President Obama is expected to sign the revised home buyer credit some time tomorrow.  And, at the risk of looking a gift horse in the mouth, I'm not sure how I really feel about the whole thing.

With the increased income caps of $125,000 ($225,000 for married couples), more people in the DC area will be able to take advantage of it.  But think about it a minute.  Is the idea to help first time buyers?  Or is it to help sellers?  And who are the sellers? A lot of them are banks selling foreclosed properties.

Um.  Is this one more bank subsidy?

The subsidy is providing an incentive for buyers to go into the market.  With more buyers in the market, home prices are increasing in some areas, and here in Washington, we are starting to see multiple offers in the double digits for well-priced homes.  So the buyer's tax credit may be offset by higher home prices, at least at the lower end of the price spectrum. 

I have to keep in mind that the lower end of our price range in Upper Northwest DC is upper brackets in other parts of the area.  Many neighborhoods east of Rock Creek Park and in other quadrants will benefit.  And the credit will likely benefit condo sellers.  

While this isn't a bad thing for sellers and the buyers who will get the tax credit, remember that a tax credit is $8,000 per transaction being subtracted from the plus side of the

national budget, which is already bursting at the seams.

In the meantime, I will try to do my part to make hay while the credit is in effect.  Hopefully, the credit will benefit Realtors® around the country, and we will pay more in income taxes, unless of course, we make less than the income cap and buy a place.