The American Recovery and Reinvestment Act of 2009, commonly known as the stimulus act, was enacted in 2009 with the goal of reviving the stagnant U.S. economy. Among the sectors most eager to receive help was the housing market, particularly in hard-hit areas like Laguna Beach. With the $787 billion project, the government aimed to lift markets such as Laguna Beach Real Estate back to their pre-recession states.
But what did the stimulus bill really do for Laguna Beach realty? If 2009 figures are any indication, it helped only marginally. This year, however, things are looking up for real estate Laguna Beach and other affected markets. If you are a Laguna Beach homeowner or are thinking of becoming one, here is a quick guide to how the legislation can affect you.
One of the goals of the stimulus act is to shrink the housing inventory, and that means getting more people to buy homes. People looking to buy Laguna Beach real estate can expect more help from the government, whether in the form of tax credits or government-backed mortgages. It is a great time to take advantage of public assistance and buy Laguna Beach realty on highly attractive terms.
Perhaps the best-known project under the stimulus act is the home buyer tax credit, which has been extended to include both first-time and repeat home buyers. People buying their first homes can now get tax cuts of up to $8,000, a significant value considering Laguna Beach real estate prices. However, those looking to benefit from it should look at the lower range, as the credit does not apply to homes priced over $800,000.
Real estate Laguna Beach remains relatively expensive, but with the home inventory still larger than average, home prices should remain buyer-friendly for at least the next few years. Many Laguna Beach homes have had to cut down their prices in 2009, some by as much as $6 million. The stimulus bill aims to stabilize the market by increasing buyer activity over the next few years, whether from local buyers or from foreign investors.
The stimulus package also addresses commercial real estate. This is especially important in areas like Laguna Beach, where tourism plays a big role in the local economy. Inviting buyers to invest in and develop commercial property can draw more buyers, both casual and corporate, to look into buying Laguna Beach realty. Over the years, this development can increase property values and revive local housing.
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