Don't revive the tax credit PLEASE!

Real Estate Agent with Bison Properties

It's like kicking a dead horse.

Home sales have dipped quite a bit in the last couple of months since the end of the tax credit.  Everyone knew it was going to happen since we were encouraging everyone to buy sooner in order the get the credit.  I still read an occasional article that talks about how the another stimulus for the housing market is still being kicked around in Congress.  A recent article from REALTOR magazine says that housing experts feel that even suggesting this can have a negative effect on the market. 

I wish our political representatives would stop trying to stimulate the economy.  I can't pay any more taxes.

You can read the article here: Housing Experts Say Tax Credit Had to End.

As a buyer, you can still get a great home at a bargain price with low interest rates.  We don't need to stimulate the housing market when the job market is in worse condition.

Comments (3)

Sophia Lin
Intero Real Estate Services - Sunnyvale, CA
Sunnyvale CA Real Estate Specialist

I'm still kinda confused on this issue; on the one hand it did stimulate the economy, but on the other I know it was a quick temp fix.....hum?

Aug 31, 2010 08:39 AM
Wallace Ashby
Bison Properties - Portland, OR

It did stimulate the economy.  But their expectation was they it keep going, not drop off after the tax credit.  Doing it again at this point would only have the same effects.  It's a larger than just the housing industry. Think of it as pouring water out of a bucket.  There's only a limited supply of water (people who can buy).  By stimulating, we drained it faster and it's going to take longer for it to fill back up.

Aug 31, 2010 08:44 AM
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

The tax credit absolutely stimulated the economy, but it absolutely did nothing for the real estate industry.  The credit put a fistful of dollars in the hands of the people most likely to spend it rather than pay bills.  Home buyers must have good credit and not be behind on any credit accounts to get financing.  Home buyers usually have an extra room or two to furnish.  The tax credit helped the economy, especially all of those Chinese furniture manufacturers. What did it do for the housing market?  It moved most of the year's transactions into the first half.

Aug 31, 2010 08:51 AM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?