There are concerns about whether Congress should extend the Housing Credit past November of 2009. Some say that it will help create sales, stabilize the economy, and provide more jobs while others say that it is poorly targeted, allowing 10-20% of purchasers to buy homes solely because of the tax credit, costing the government about $46,000 for each sale. Those who oppose this extension say that it does not help reduce inventory because when buyers purchase a new home, they also put up their existing home for sale.
The proposal is to extend the credit for homes that close by June 30, 2010 and is worth $8,000 for first time buyers looking to live in the house for more than 5 years and $6,500 for those looking to upgrade from a house that they have lived in for more than 5 years.
Currently, this extension is being attached to an amendment to extend unemployment benefits and could pass by next week.
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