Senate OK's $15,000 bonus for homebuyers

Housing could get a big boost from the latest addition to the mammoth stimulus bill working its way through Congress. Senate legislators unanimously approved a proposal that would allow a tax credit for homebuyers of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers. "It is time to fix housing first," said Sen. Johnny Isakson, R-G. Isakson's office said the proposal would cost the government an estimated $19 billion. In all, the stimulus is now topping an estimated $920 billion.

REAL Trends Comment: Senator Isakson knows the housing industry better than any member of Congress and this action is exactly the kind of directed action that will have an immediate positive stimulus impact on the economy. The sooner this amendment gets passed the sooner the housing market will begin to show further signs of life.

Source: REAL Trends: The trusted source for residential real estate information and analysis, trends and news.