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Each month AR runs numerous contests as a way for our members to engage in activities
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These state pages or hyper-local pages provide content directly related to a specific geographical location.
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The stimulus bill signed into law provides a very generous tax credit to first time home buyers to help stimulate the sagging housing sector. The credit will supposedly entice buyers to get out and buy part of the current inventory and move the industry forward. I believe that it will not do what it is designed to do, and will cost us more than the 8,000 dollars per homeowner in the longrun.
First off, with pricing a very low levels, some at pre-1990 levels, there is enough incentive to buy based on price. Secondly, the tax credit only applies to first time buyers with incomes between 75k and 150k combined. Some of the largest areas hit by the housing bust are second homes and luxury homes. Neither would be helped with the credit. It would seem that the largest recipient of the added business will be the banks, since they have so many foreclosures from people who had little or no downpayment. That is one of the hallmarks of the first time buyer.
How will putting a short term stimulus into the housing area help in the long run. It won't. It will cause a short term bounce, but it will not make Americans who already have homes go out and buy another. It will give an artificial sign that the bust may be over. It will however set the stage for the next bust. As we move into higher inflation caused by the governments massive spendng, how will the new buyers adjust will spiraling costs to maintain their home and lifestyle
I would like to see a recovery, one that is based on sound principals of supply and demand. The government is making it worse by stimulating the wrong sectors. What about the 75 million baby boomers that may want to downsize? The misuse of capital got us in this mess in the first place, now we are looking at the next big shock to hit the system.
Ais Realtors, we need to be aware of the economic forces that are causng our industry such upheaval. We cannot blindly agree with the NAR on its focus. By understanding that it is free markets that have created this countries greatness, not government intervention, we can collectively set forth a set of guidelines that will provide for our industry and our families for the long run.
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.