Part of the new budget includes some exciting news for first-time home buyers. They are going to be upping the first-time home buyer tax credit to $1,500. Currently, it's $750. It's essentially $5,000 multiplied by 15%. So the new credit will be $10,000 times 15% is what I presume. This is really exciting. 

It's becoming increasingly difficult for people to purchase homes because the prices keep going up, and the government understands that. The price keeps going up because people keep paying for them, and if people keep paying for them, then the prices won't go down. Anyone who buys a house for above the asking price are to blame. That's how people buy homes. They're either going to pay what the seller is asking or higher. Years ago, someone would put a house for sale for a couple hundred thousand dollars. The offer would end up being only $180,000 or $170,000. That just doesn't happen anymore.

You'd be hard pressed to find a house that isn't in competition with other people, and it's almost a “who you know” kind of market. That was the case for us when we purchased our current brick and mortar location. It was because I knew the previous owners. It wasn't even officially on the market.

It's difficult to find a place to buy and be the first potential buyer in line with a reasonable offer. Hopefully, this credit and the savings plan will allow those people to be able to pay the asking price or even above the asking price for a home.