Kagen, Realtors Praise Homebuyer Tax Credit

FOR IMMEDIATE RELEASE:

April 30, 2010

KAGEN, REALTORS PRAISE HOMEBUYER TAX CREDIT

Incentive to buy helped thousands of Northeast Wisconsin families into homes

GREEN BAY, W.I.- Congressman Steve Kagen, M.D. highlighted the overwhelming success of the homebuyer tax credit today as we reached the deadline for the popular incentive.  Across Northeast Wisconsin, realtors credit the tax credit to a rise in home sales and business for home repairman, and hard-working families are thankful for the opportunity to finally call a house their own.

“The home-buyer’s tax credit program has been very successful by all measures, with many families becoming homeowners for the very first time, stimulating our local economy in the process” said Kagen.  “The increase in economic activity at real estate offices was welcome news to everyone.”

The full effect of the credit will not be known for some time, but as of the first of March, over 43,000 Wisconsin families took advantage of the buying opportunity, equating to over $308 million in tax savings.

“I’m happy to have delivered tax relief to the middle class,” continued Kagen, “and I am pleased we were able to extend this valuable incentive to our active duty service men and women who continue to serve overseas.”

Part of the American Recovery and Reinvestment Act, the tax credit for first-time homebuyers is $8,000 and purchasers who have lived in their current residence for five years were eligible for a $6,500 tax break.

KC Mauer, past president of the Realtors Association of Northeast Wisconsin, attests to the program’s success.

“I’d call this program a massive success,” Mauer said.  If you look at the first four months of this year, and you compare them to last year, given the interest rate and all things considered, you have to say that it because of the this tax credit.”

“The tax credit has offered the opportunity for home buyers in many ways,” noted Rachel Bachand of Remax Realty.  “It provides the security of having a cushion should a repair be needed down the road and for others it has helped push the local economy by buyers hiring contractors for remodeling projects or spending money on items for the home that they may not have had in reserve previously. This has been a great jump start to the housing market and even though it’s expiring, buyers should keep in mind that this is still a great time to buy with low interest rates and great housing opportunities.”

Jim Griffin, a broker with the Micoley & Co. Realty Group in Green Bay, emphasized that the program also help spur new construction. 

“The impact of the first time home buyer and existing home-owner programs have led to robust first quarter results,” Griffin stressed.  “In Northeast Wisconsin both buyers and sellers have benefitted. Closings of residential homes through the first quarter reflect an increase of 18.6% year on year.  Even more dramatic has been the increase of new construction, realizing a first quarter growth of 28.6% year on year. We believe this positive momentum will continue.”

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