Commercial Real Estate Market Concerns Congress

As reported by HousingWatch.com, some in Congress, led by Dem. Paul Kanjorski (Penn.) and Rep. Calvert (Calif.) are growing increasingly concerned about the state of commercial real estate industry.

A letter, signed by 77 congressmen and women, was sent to both the U.S. Treasury Department the Federal Reserve warning of the damage a collapse of the $7 trillion industry, which supports some 9 millions jobs, could do to the recovering economy.

The critical moment people are looking ahead to comes in 2013, when $1.4 trillion in commercial mortgages will be due.  According to Deutsche Bank analysts, about 65% of them will have a difficult time getting refinanced.

The New York Times has reported that these members of Congress would like the two federal agencies “to make a clear public statement encouraging lenders to continue to make credit available for performing assets, even if the value of the property has taken a hit in its value.”

Claudia webb RE/MAX Allegiance
Northern Virginia Real Estate

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Tax Credit to Home Buyers Extended and Expanded

The White House has confirmed that President Obama will sign into law an extension on the federal tax credit to first time home buyers sometime this weekend.  The bill, which also includes an expansion for prospective buyers that already own a home, passed in Congress just days ago.  The tax credit was due to expire at the end of November, however, members of Congress worked hard to renew the important economic stimulus package.

Congress has extended the $8,000 tax credit to new home buyers by seven months.  They also added a $6,500 tax incentive to those buyers who currently own a home and have lived there for five years or more.

http://cbs11tv.com/national/congress.jobs.homebuyers.2.1293300.html

Claudia webb RE/MAX Allegiance
Northern Virginia Real Estate