Ron Phipps, First Vice President with the NAR stated to the Senate Banking, Housing and Urban Affairs Committee on October 20 that one key way to keep the momentum alive is to extend the current tax credit program. As a result of the current program, sales of existing homes have jumped to a projected figure of just over five million units, making a marked impact on the glut of unsold homes. Phipps added that a major factor is that each home sold generates nearly sixty-three thousand dollars in added economic activity to the area. This provides a much-needed boost to our country's overall economy.
Phipps warned that our current state of recovery is very fragile and that as of today, any buyer who signs a contract to purchase a home will not likely make the November 30 deadline to receive the credit. He continued by emphasizing that Congress needs to act swiftly to extend the credit in order to avoid a possible return to the freeze which the market has struggled to recover from. He urged that a return to previous conditions could happen as soon as next month if prompt action is not taken.
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