Stimulus Plan to Give $15,000 to Home Buyers

If record-low interest rates and an abundant supply of houses on the Portland market weren’t enough to make you eager to start looking for a new home, the Senate yesterday passed a proposed economic stimulus package that includes $15,000 for home buyers purchasing within the year.

The plan would give a tax credit of $15,000 (or 10% of the home’s purchase price, whichever is lower) and applies to all buyers – not just those purchasing their first homes. The Senate plan has no income limits and, unlike the tax credit passed last summer as part of the Housing Recovery Act, does not have to be repaid.

At the same time, mortgage interest rates are expected by many to fall to 4.5% in the coming months.

Is a sizable tax credit combined with a rock-bottom interest rates and unprecedented selection enough spark stagnant sales? Or are potential buyers going to continue to wait, believing that our market has not yet hit bottom?

Current home prices in Portland metro area are down 17% from their peak. Houses in the local market usually sell quickly when priced at 80% of their peak price.

Home buyers waiting for the real estate market to hit bottom will inevitably be caught making their purchase as house prices are on the rise. There may never be a better time to find the home of your dreams….