Tax Credit Increase, Again?

Had seen that...will be following and good news to spark and help home buyers.

I saw this too....I think it will definetly help the Real Estate market, but I don't know how practical it is on the governments end, they can only hand out so much money

I worry what effect this will have on buyers in the market today or those buyers who are about to enter the market. Similar to the refi client who was holding off for the rates to hit 4%, will this suggestion of a 15k tax credit keep buyers on the sideline waiting to see if this in fact becomes a reality...?

Also, if a suggestion like this takes enough people out of the market and then the market recovery begins to stall or even worse decline further do to this suggestion...what happens? Is the gov't now forced to pass a more aggressive tax credit that the need for was generated by this move today...

There are a lot of people with good credit,  good income who are trapped in a home that their family has outgrown.  They have little or no equity due to the decreaase in values, and they are unable to make a move.  They can't save money rapidly enough to offset the decrease in their home value, and to build up a downpayment fund too.

A tax credit may make the difference in helping them with sales expenses and afford to sell their home.  To be effective, however, any expanded tax credit needs to have the ability to be monetized.  It needs to be usable as available cash to close on a sale, and/or as part of a required downpayment on the new home.

I think the program likely would effect reduction of real estate inventory sufficiently to justify the cost.  If real estate got us into this recession, it is probably going to have to get us out.