A recent NAR survey indicated only 6% of first time homebuyers took the plunge because of the credit, but claimed that interest rates and falling home prices were what made them buy. Analyst Keith Gumbinger of HSH.com poo-pooed the credit indicating that we are rewarding people for doing what it take issue with they have done anyway.
I take issue with this reaction. Owning a home is an important part of fulfilling the American Dream for many people. It's just a matter of time for those who see this in the best interest of themselves and their families. So, of course, they would have eventually bought!
Only a fool would buy a home he was not prepared to buy just to get $8,000. This amount would mean little if home prices and interest rates were sky high. A combination of factors whetted buyers' interested; I'm betting that the credit was the cherry on the icing on the cake that encouraged those who were waiting to become homebuyers. That made them think of buying now and probably pushed up their time table. The credit was not the sole reason they bought but when packaged together with the other things was too good to pass up.
As I have said many times, a responsible agent would not encourage an unqualified person to buy a home just because of the credit; in fact, I bet many agents have told those with credit problems, for example, to wait. On the other hand, if the people were prepared to buy, a smart agent would stress the value of the credit and give a nudge where appropriate!
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