WASHINGTON, D.C. – The National Association of Home Builders this month reported that its members were “confident” that a new $7,500 tax credit for some first-time homebuyers would stimulate the housing market.
The temporary federal credit is part of the Housing and Economic Recovery Act of 2008, signed by President Bush on July 30.
“First-time homebuyers make up about 40 percent of the entire market,” said Sandy Dunn, NAHB president and a home builder from Point Pleasant, W.Va., in a statement. “They don’t have a home to sell and they bring demand to the market. As more than 2 million anticipated first-time buyers enter the market and claim the credit, this will stimulate buying up the housing ladder.”
The $7,500 credit is available for any qualified purchase made between April 9, 2008 and June 30, 2009 and is repayable during a 15-year period, “making it, in effect, an interest-free loan,” NAHB said.
Ed Brady, a home builder from Illinois, said in a statement that the biggest difficulty in the Illinois market is a glut of inventory on the market, but this bill has “key components that will help take inventory off the market and restore a more normal supply-and-demand balance.”
Based in Washington, D.C., the National Association of Home Builders is a trade association representing more than 235,000 members involved with home building, remodeling, multi-family construction, property management, subcontracting, design, finance and other aspects of residential and light commercial construction. For more information, and a chart detailing the first-time homebuyer credit, visitwww.NAHB.org.
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