Help for homebuyers

Fri, Nov 20, 2009 (3 a.m.)

The struggling housing market in Southern Nevada would be worse off had Congress allowed an $8,000 tax credit for first-time homebuyers to expire at the end of the month.

Thankfully, Congress came through, setting the table for President Barack Obama on Nov. 6 to sign an extension of the credit through June while also approving a $6,500 credit for certain homeowners who buy a new residence.

No one is kidding themselves that tax breaks alone will cause buyers to flood the market, but any stimulus is better than having no incentives at all. Both the Greater Las Vegas Association of Realtors and the Southern Nevada Home Builders Association realize this. Home Builders spokeswoman Monica Caruso told Brian Wargo of In Business Las Vegas that the credit represents “a short-term boost for the industry.”

One reason why more potential buyers could take advantage of the credit is that income limits have been now been raised from $75,000 to $125,000 for individuals and from $125,000 to $225,000 for couples. That certainly creates the potential for more Southern Nevada homes to be sold, bringing normalcy back to neighborhoods that have been ravaged by foreclosed and abandoned properties.

But Caruso was right when she told Wargo that what the housing market really needs is an economic recovery and a boost in consumer confidence. That means creating jobs so that individuals can afford to buy homes.

Obama hopes to tackle the nation’s double-digit unemployment rate by hosting a forum next month to get input from businesses, economists and other experts on how to create jobs. From our perspective, the timing of this conference could not be better.

The sooner people can get back to work, the quicker the housing market will rebound.