If you're like me you probably have mixed views on tax credit. It is estimated that the February first-time home buyer tax credit cost the government roughly $43,000 for every additional home sale it generated!
Here is a few thoughts I have for new tax credit:
Will home prices decrease because existing home owners will just reduce their home price $6500 knowing that they will make it up on the back end? Will this force existing home owners to compete with foreclosures so that buyers will buy their home and not bank owned? Then forcing bank owned to lower theirs.
I think this a great for business,but I think the future will suffer. We need more quality buyers not more listings. This will put more listings on the market ultimately reducing price.