More On The Tax Credit

As I and many others have mentioned, it is not necessary to extend the tax credit.  Many may not like that I am saying that but I say this because I don’t want to be footing the bill as a taxpayer for something that really isn’t needed to help our economy recover.

The article below mentions a lot of the same things that I mention.  People are buying homes because they are the most affordable ever and interest rates are low.  The National Association of Realtors made an assumption as to how many people bought due to the tax credit and arrived at a figure of about 50%. 

Here is a great argument to why that is probably wrong and goes back to what I have been saying.  “The NAR arrived at its estimate by assuming that the entire increase in the proportion of all homes being purchased by first-time buyers is due to the tax credit. But in the current environment first-time buyers were always going to account for a larger share of home sales. Indeed, the sharp price falls over the last three years have brought housing more within reach of first-time buyers, the recent stabilization in prices has released a lot of pent-up demand, and negative equity will have constrained the ability and willingness of existing owner-occupiers to move.…”

http://blogs.wsj.com/developments/2009/10/06/is-the-impact-of-the-first-time-home-buyer-tax-credit-overstated/