WASHINGTON, D.C. – Montana’s Congressman, Denny Rehberg, today sent a letter to House leaders urging them to extend the home buyer tax credit. He has also cosponsored the Homebuyer Tax Credit Act of 2009.

"While there are a great number of things we can to spur economic recovery, few can match the impact of a strong housing market," said Rehberg, a member of the House Appropriations Committee. "The benefits of the homebuyer tax credit can be seen throughout Montana and the country. If we want true economic recovery, let’s extend what works and eliminate what doesn’t."

According to recent analysis, one out of three homebuyers have taken advantage of the $8,000 homebuyer tax credit in the last several months, helping fuel a steady gain in homebuilder and realtor sentiment since January. However, the pending November 30 deadline for the credit has already caused a builder slowdown for projects that could not be completed in time to be eligible.

"Over the last 3 months, 100% of my contracts have been for first time home buyers using the tax credit," said Chip Pigman, Homebuilder from Hamilton. "Congressman Rehberg’s effort to expand this tax credit will make a huge difference in our community and will help me keep my crew employed."

The Homebuyer Tax Credit Act would extend the credit for a year. In addition, it would increase the credit to 10% of the purchase price of a principal residence, up to $15,000 while making it available to all home buyers.

"We are ecstatic that Congressman Rehberg is leading the way - not only to continue, but to expand the tax credit," said Dustin Stewart, Executive Director Montana Building Industry Association. "If nothing else, his leadership has given Montana small business owners the optimism to keep fighting through the recession. This will make a real difference in the lives of many Montanans The first time home buyer tax credit has been the saving grace for dozens and dozens of Montana builders."

"The $8,000 first-time homebuyer tax credit has helped many communities in Montana avoid what would otherwise be a significant downturn in the housing sector of our local economies," said Glenn Oppel, Government Affairs Director for the Montana Association of Realtors. "The tax credit is providing much needed economic stimulus, and the added benefit of community stability, that comes with increased homeownership."

The letter is below:

Dear Speaker Pelosi and Minority Boehner,

We write to you today in bipartisan agreement that the homebuyer tax credit should be extended. The federal government has pursued many avenues to ensure our economy can recover from the worst recession of our lives. Few efforts, however, have been as successful as the incentive given to first-time homebuyers.

Since the tax credit was expanded in February, we have seen house sales rise and glimpses of price stabilization. From April through July, we saw three straight months of rising prices of single family homes. The number of home sales rose 11 percent from May to June, the largest gain in eight years. In September, conservative economist Mark Zandi predicted the tax credit will contribute to 400,000 home sales and the Campbell Institute released a study concluding the tax credit contributed to 357,000 home sales between February and September of this year.

While these are positive signs for the housing market, the reality is that it remains extremely fragile. Home prices still remain 15 percent lower than a year ago and first-time homebuyers continue to make up a third of all buyers. At a time when billions are being offered to troubled financial institutions and mortgage rates remain borrower friendly, nothing is restoring confidence in the market like the first-time homebuyer tax credit. Yet, with an average closing time of three months, many potential homebuyers are nearly out of time to use the credit – and an extension is needed for the credit to maximize its impact for both homebuyers and our housing market.

While many of us have our own ideas of how to improve or expand the homebuyer tax credit, we can all agree that action is urgently needed on the credit before it expires at the end of November. As the House leadership prioritizes legislative action on provisions that will expire this year, we ask that you give full consideration to the homebuyer tax credit. We look forward to working with you to stabilize our nation’s housing market and strengthen our economy.

Sincerely,