Gov. Crist's goals for the spring lawmaking session include four separate tax proposals that would go before voters on the 2010 ballot, when he himself would be seeking voters' favor as a candidate for re-election.
His proposal to increase the homestead exemption for First Time Home Owners to 50 percent of the market value of the home is running into alot of opposition state-wide. And for good reason. Locally, the only market that is strong is the First Time Home Buyer market. This is because prices have dropped significantly and home ownership has become more affordable. Since the real estate decline, 90% of my business is coming from first timers.
Locally, we need a stimulus for those who are already homeowners and whose homes have lost value or who need to move but can't sell their home. An additional tax break for first timers will just create even more demand in the lower price ranges driving prices even lower (most first timers have a single income and are at an earlier point in their careers so their entry level price is usually below $200K). One of the main driving factors in price reductions I have seen in the past 2 years is an attempt by sellers to get their property into the range of first timers since that is such a strong market.
Crist should focus on the market that is suffering from the real estate decline and leave the market that is working alone.
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