Falling home values are at the core of our economic crisis, as home prices and property values continue to decline across the county. Americans are hesitant to purchase for fear that prices are not stable. Existing home inventories are at an all time high and the industry feels Congress should pass short term, targeted incentives that will encourage everyone to purchase again. A recovery in home economy will provide the confidence and stability the entire economy needs to start recovery. Review our proposal below and ask your Congressman and Senators to “Fix Housing First“.
Take a few minutes to review this video from Jerry Howard, Chief Executive Officer of the NAHB:
A Housing Recovery Plan To Revive the American Economy
Effective and meaningful action that works for Main Street
The Problem: Falling home values are at the core of the current economic crisis.
• Home prices and property values continue to dramatically decline across the country, affecting hard-working Americans everywhere.
• Americans are hesitant to buy homes now because they fear prices wonâ€™t stabilize anytime soon.
• Existing home inventory is nearing an all-time high and increasing as foreclosures flood the market.
• All sectors of the economy are affected because housing is so central to our daily lives.
• Thousands (soon to be millions) of jobs across all industries have been lost as a result of the housing crisis.
• Consumers have stopped purchasing, and small businesses are failing.
• Time is of the essence – single-day market changes can quickly wipe out the $700 billion economic recovery plan.
The Solution: Short-term, targeted incentives will encourage Americans to buy homes again.
• In 1975, Congress passed a short-term $2,000 tax credit for all new homes ($12,000 adjusted for today’s median home prices) coupled with subsidized mortgage rates. The stimulus jump-started the depressed economy and the effects continued long after the measure expired. What’s needed now to create a housing recovery:
1. Enhance the Home Buyer Tax Credit
2. Eligible purchases: primary residences between April 9, 2008, and December 31, 2009.
3. Credit amount: 10% of home price capped at 3.5% of FHA loan limits (geographically dependent) â€” ranging between approximately $10,000 and $22,000.
4. Eliminate current recapture: Only repayable if home is sold within 3 years.
5. Monetization: credit available at time of closing.
6. Below market 30-year fixed-rate mortgage for home purchases
7. 2.99% rate available for contracts closed between now and June 30, 2009.
8. 3.99% rate for contracts closed between June 30, 2009 and December 31, 2009.
• Continue foreclosure prevention measures to keep people in their homes, help stabilize home prices and bolster the economy.
The Effect: Reviving demand positively affects the global economy.
• Stops the fall in home values.
• Encourages people to buy NOW instead of later.
• Restores consumer confidence and gets them spending again.
• Enhances the hard work that has been done to shore up our financial system.
• Creates jobs opportunities across the country in every sector.
• Energizes the economy!
B.O.L.D. Homes, Inc.:
when how it is built is just as important as what is built!