daniel3582

The True Cost of the Home Buyer Tax Credit

In theory, you are correct... however, there are not enough homes being sold to cause anything more than an statistically insignificant rise, especially considering that the credit is (in all reality) fairly small.


On Sep 02 06:55 PM Celcius wrote:

> Has anyone considered the inflationary impact to housing prices with
> the $8,000 incentive? House prices should rise as the incentive artificially
> inflates demand; consequently, putting additional wealth into the
> pocket of the seller. Thus the incentive benefits the seller and
> burdens the tax payer. Once the incentive ends, housing demand should
> decline and cause a reduction in home prices. And potentially put
> these new home owners upside down in their home loans, since they
> purchased the property at an artificially inflated price.
>
> It looks more like a bailout for speculators.