$15,000 Home Buyers Tax Credit Passes Senate. Now Comes the Fun Part.

avatarthumbnail.jpgSo now what?

This morning, the Senate passed its version of the $900 billion(ish) Stimulus Bill that included a $15,000 tax credit for those purchasing a home within the next year as their primary residence.

Other than the fact it leaves everyone who may buy a home ahead of the bill’s passage out in the cold, the credit could spur some potential buyers currently on the fence into making the leap into the real estate market.

Ironically, in the Phoenix real estate market activity hasn’t necessarily been the issue. It’s the type of activity – the vast majority of homes selling are bank owned and they’re selling because the banks are slashing prices faster than Sirius satellite radio retailers.

But that’s another story …

Many questions have been asked about the $15,000 home buyers tax credit but at this point there’s nothing to say. And given the lines already being drawn in the sand by the House Democrats (the same party who’s also in leadership in the Senate, incidentally) it’s far from certain that the tax credit will survive in Senate form.

“We can’t wait and see and hope for the best,” he said. “I believe in hope, but I also believe in action. We can’t afford to posture and bicker and resort to the same failed ideas that got us into this mess in the first place.”

That was President Obama earlier today. What’s interesting to me is given that House Republicans are less relevant than the Kardashians right now, the bulk of the bickering is going to be inside the Democrat ranks.

So, to get back to the beginning, what’s next? The House and Senate need to hammer out the differences between the two bills in conference committee. Then both chambers need to pass the final version of the bill. And, finally, President Obama needs to sign off on it.

Congressional leaders are hopeful of having everything worked out by Presidents’ Day, which would at least make them far more effective than your average lender short sale negotiator. (And that’s a story for another day.)

[tags]Phoenix real estate[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.