How the plan affects the home buying consumer and the overall Real Estate Industry

Now that the stimulus package is approved and is on its way to President Obama for signature, it is my hope that Congress will turn its attention toward helping homeowners remain in their homes and take immediate steps directed specifically at stemming the ongoing foreclosure crisis.

So here's what we have achieved thus far:

1) The loan limits will be raised to $727,000 in high cost areas,
2) The tax credit will be raised to $8,000 with NO payback [a true credit],
3) Interest rates have come down 125-150 basis points, and
4) The bill has over $50 billion in it for foreclosure mitigation.

In addition, we preserved what we have: mortgage interest deductibility, real estate tax deductibility, and the $250,000/$500,000 capital gains exclusion.

The stimulus package also contains $308.3 billion in appropriations spending, including $120 billion on infrastructure and science and more than $30 billion on energy-related infrastructure projects. It also allocated an additional $267 billion for direct spending, including increased unemployment benefits and food stamps; and provides $212 billion in tax breaks for individuals and businesses.

While we study the Treasury specifics on their major role in providing the rest of the housing solution, there is much more to come and the NAR is working diligently with the Administration to help “unclog the pipeline” and get capital flowing into housing again.