Bush’s Proposal for Home Buyers

It’s nice to know that after all was said and done, Postrel is still going to buy that first home. So are many others, and that is very good for everyone!

The proposed $5,000 tax credit for first-time buyers will stimulate the area of the economy--housing--that has and will lead the way out of the recession. The sale of an entry-level home is a strong catalyst for the rest of the marketplace.

That seller is usually a buyer somewhere else, so the chain reaction of sales occurs. Each sale has an impact on the local economy by affecting over 12 different but related businesses--from escrow companies to moving companies, and all of the people that they employ. Put simply, it’s jobs that I’m talking about.

But, let’s buy homes for the traditional reason--shelter. Homes are where we raise our families and live our lives. Homes are where we can build up savings (equity). Let’s encourage and support homeownership and let efforts to invigorate the housing industry lead our economy to sustained growth.

MICHAEL F. NAPOLITANO

President, Glendale Board of Realtors