Congress Aims To Stimulate Housing Market

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Updated: 4:53 PM Jul 13, 2008 Congress Aims To Stimulate Housing Market The slumping real estate market has foreclosures on the rise and some first-time home buyers with cold feet, but now Congress is trying to help change all that. Posted: 6:09 PM Jul 12, 2008 Reporter: Matt Holmes Email Address: matt.holmes@wcav.tv

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July 12, 2008

More and more people are renting instead of buying, making foreclosure nowadays a household word. However, now Congress is looking at attacking the problem on multiple fronts.

Local real estate leaders say some of these measures could make a huge difference in some parts of the country.

"Our housing prices have been elevated are still we have a lot of fairly expensive homes here, of course, and we certainly will benefit from the jumbo loan limits," said Dave Phillips, CEO of the Charlottesville-Albemarle Association of Realtors.

Lawmakers looking at taking significant steps like awarding an $8,000 tax credit for first-time home buyers, dramatically expanding the Federal Housing Administration loan program, and providing steep increases in the limits for conventional loans.

Phillips says if this legislation passes, we could really start to see some changes in home sales across the country.

"The three things: the jumbo loan limits, the tax credit and the FHA backing that are very exciting, and if Congress can get their act in gear in an election year and actually pass something, I think it will be a great thing for the American people," said Phillips.

That may NOT be a big "if". Te House of Representatives has already passed this bill and the Senate is expected to pass it.

The bill would then go on to President Bush, who pundits say typically would veto such a bill, but they add in an election year, a presidential veto would be unlikely.

Analysts say bigger metropolitan areas like New York and California would benefit from this congressional stimulus package, but because of high housing prices in Charlottesville and Albemarle County, it could make a big difference here as well.

Latest Comments

Posted by: Steve Location: Florida on Jul 12, 2008 at 09:19 PM

NO more government intervention! Just let the housing prices correct to 2004 prices where they would be now anyway if this greed and speculation never occurred. All these government fixes and bailouts do is enrich the criminal bankers and realtors that got us in this mess in the first place. Please tell your legislator that you are against taxpayer bailouts of these dirtbags.

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