GREENSBORO — U.S. Rep. Howard Coble introduced legislation Wednesday that could help the housing market maintain the momentum that has emerged from buyers in recent months.
The Greensboro Republican has offered a bill that would build upon the popular $8,000-maximum tax credit meant for first-time home buyers. Coble’s bill would extend the credit through 2010, open it to all home buyers and eliminate income-qualifying limits.
Realtors, home builders and mortgage brokers have all seen more business in recent months, in part, because the tax credit is spurring some would-be buyers to jump into the housing market.
Now, the tax credit only applies to first-time homeowners who buy homes before Dec. 1. In addition, single buyers need a modified adjusted gross income of $75,000 or less; married couples need $150,000.
Coble’s bill, known as the Home Ownership Moves the Economy Act of 2009, has been referred to the House Ways and Means Committee.
Coble was prompted to write the legislation after visiting Richard P. Martin, a High Point builder who couldn’t sell his houses. Martin suggested expanding the current tax credit law.
“My gosh,” Coble recalled thinking. “Why not just extend it another year? That would be an incentive to come near jump-starting the economy.”
Under current law, the tax credit does not have to be paid back unless the homeowner sells the house within three years of purchase.
Coble is seeking 50-75 co-sponsors for the bill. He sought advice from home builders and real estate agents, who liked the proposal, he said.
“Nobody discouraged me, so it’s having a positive run,” he said.
Eddie Potts, vice president of mortgage loans at NewBridge Bank for Forsyth County, said first-time buyers already have expressed interest in the current tax credit.
“If buyers in general knew that they were going to be reimbursed … I think that would generate a lot of excitement,” Potts said.
Interest rates for 30-year fixed-rate mortgages have been at record lows in recent months, spurring a lot of buyers.
But rates have been creeping up in recent weeks, worrying some in the housing industry that buying could start dropping off again. On Wednesday, the rate on a 30-year fixed-rate mortgage was 5.79 percent, up from 5 percent just a couple of weeks ago.
Martin said enough people are not taking the bait of low rates and the current tax credit; some of his houses have sat idle for almost a year.
Martin started writing Coble in the winter and expressed his concerns about the housing market while showing the congressman his vacant CastleRidge property off Trafalgar Drive about a month ago.
Coble said that the economy thrives when the real estate market thrives. Martin agrees.
“Right now, we’re having a problem selling homes,” Martin said. “And I think he’s trying to get something done in Washington that will affect our community directly.”
He said the housing industry affects so many other businesses, that it cannot afford to slump any longer.
Martin likened what the economy and the housing industry are to a car and its weak battery.
“It’s not that the battery is dead, it just needs a jump start,” he said.
“Once it gets started, it’ll take care of itself.”
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