Lawmakers are talking about offering homebuyers a $15,000 tax credit this year, hoping to end the slide in housing prices. It appears the credit would apply to primary homes only, according to this morning's New York Times.
The Senate approved the idea by voice vote last night. It looks like a final vote on the economic stimulus package could come later today.
Sen. Johnny Isakson (R-Ga.) is quoted as saying the plan was modeled after a $2,000 homebuyer incentive in 1975.
"We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what's happening now," he said at a news conference. "Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that's what I was doing to feed my family and make a living."