Friday, Nov. 06, 2009

Local Realtors cheer extension of tax credits for homeowners

Local Realtors await Obama's signature

Metro-east Realtors said Thursday federal lawmakers took the right move toward approving a bill to extend unemployment benefits that also includes a provision to extend tax credits to both new and existing homeowners.

The bill, which now heads to President Barack Obama's desk, calls for a seven-month extension of an $8,000 tax credit for first-time home buyers that was initially set to expire at the end of this month. It also creates a $6,500 tax credit for those who have lived in their homes for at least five years.

Joe Hardin, president-elect of the Realtors Association of Southwestern Illinois in Belleville, said that both the national and state association of Realtors support the move.

"I think the position of (National Association of Realtors) and (Illinois Association of Realtors) on both levels are very supportive of the incentive programs because of what we're doing," Hardin said.

Dan Tatum, the group's past president, said he has had homeowners calling about the incentive.

"I had a home buyer call me, and she said she was very excited about the prospects of this passing," Tatum said.

"I have received a number of phone calls from my buyers," said current president Deb Campbell, "and they are already psyched over this. Hopefully, it passes. It's got a buzz going around the community, a good one."

In Glen Carbon, Greater Gateway Association of Realtors Executive Director Al Suguitan he was also pleased with the proposal is wondering how effective it will be on the housing market.

"I feel very good about it, but I'm also somewhat guarded because there is always the question of, 'Will this be bringing in sales in the future like the Cash for Clunkers program?'" Suguitan said. "When that program ended, the sales ended."

Mike Onorato, president of the Illinois Association of Realtors, said that the initial tax credit for first-time home buyers boosted home sales statewide. He said that 10,350 sales were recorded in Illinois in September --a 3 percent increase from the 10,018 homes sold in September 2008. Onorato said this is the first time the state's year-over-year sales increased in more than three years.

"We think it will be will finally have an impact on the move-up market," Onorato said. "We think this is very good. We look to stabilize our housing market, which we think is still fairly fragile. We can use all of the help that we can get."