Portland
Oregon Real Estate - Live Green...Live Well!
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Patrick
Smith, MBA, AHWD
Eco Broker Certified
503-421-3824
Licensed in the State of Oregon
CONTACT PATRICK
4001
NE Halsey Street, Suite 100, Portland, Oregon,
97232
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Effects of the Stimulus Package on the Portland Real Estate Market After much debate and almost as much compromising on all sides, congress has finally approved a stimulus package which will, undoubtedly, receive President Obama’s approval and signature tomorrow in Denver, Colorado. So what does the stimulus package hold for purchasers of Portland real estate?
The provisions set forth in the stimulus package should not be confused with the benefits outlined in the housing recovery package that President Obama is expected to announce on Wednesday. Although most realtors were hoping to see the Senate’s proposed housing stimulus make it to the final cut of the legislation, i.e., a $15,000 tax benefit to any buyer of real property, it is hopeful nonetheless that an $8,000 tax benefit for first time home buyer’s has been added. What this means for the Portland real estate market is simple: First time home buyer’s should be encouraged more than ever to begin looking for their first home. Not just because of the tax credit, but they also can benefit from historically low interest rates and the lowest home prices in years.
The second part of the housing stimulus addresses distressed homeowners and will be addressed in the housing plan President Obama is expected to announce in Phoenix, Arizona on Wednesday. It is expected that the president will propose a $50 billion to $100 billion commitment to stem the tide of foreclosures. Some of the provisions of the recovery package include allowing bankruptcy judges to modify mortgages and requiring lenders to modify existing loans by writing down the principal amount owed rather than simply reducing the current interest rate.
Benefits of both the stimulus package and the housing recovery plan should prove to both support and bolster the Portland real estate market in the months ahead. Effects of it are already beginning to show as more first time home buyer’s and investors are exhibiting more interest in making purchases.
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