Cheryl Kempenich

Industry groups agree that not only has the federal housing tax credit worked, it should be extended to promote further economic growth. Over the last year, first-time home buyers have supported roughly 45 percent of real estate sales. Economists and industry leaders want to see the credit extended to stabilize home prices and build consumer confidence.

Karen Rivedal of the Wisconsin State Journal writes, “The National Association of Home Builders estimated that extending and broadening the tax credit would spur 383,000 additional home sales, including 80,000 new home starts as more sales of existing houses deplete the nation’s inventory of unsold homes.”