Actually, it's neither.

Rumors swirling around buyers, asking agents " I heard about a $15,000 tax buyer credit--I'm thinking of waiting to buy".  Let's hear the full story!

It's true that Senators Christopher Dodd (Conn-D) and Johnny Isakson (Georgia-R) have introduced legislation to 1) extend the current $8000 tax refund past the November 30 deadline, 2) increase the credit to $15,000 and 3) make it available to ALL home buyers, not just first time buyers. Senate Majority Leader Harry Reid supports extending the credit. 

As a Realtor, I would love to see the tax credit at the very least extended past the November 30 deadline. Here in the Kansas City area, sales of homes priced under $200K are what's hot--because those are the homes within reach of a first time buyer.  That's where most of my sales are this year. A $15,000 tax credit for all homebuyers?  Yea baby let's do it!

As a taxpayer,  I wonder about the chances of the extension and increase of the credit.  Today we hear the deficit will hit over $9 trillion dollars over the next ten years.  How would the extension be funded? By just adding more red ink to the deficit?  Would that get passed by the House and Senate?  Both sides surely agree about the impact for the economy with a strong housing market, but at what cost ? 

We're hearing that housing sales are up.  Yes for first time buyers, yes for foreclosures, but we need those second and third time buyers to feel confident enough to sell and buy.  SECURE JOBS are the key to that market.

Once the health care debate is decided, you'll hear more about extending the housing credit/refund.  And if it passes, the media will be all over it, just like the 'cash for clunkers' program. 

And unlike the 'cash for clunkers', a truly robust housing market will have a much bigger effect on the overall economy. 

Thanks for reading!  Comments welcome.  maryhutchison.org