There was an implied statement this weekend from HUD Secretary, Shaun Donovan that there would be a 2nd home buyer tax credit on the way, or that the original $8,000 tax credit would be revived.
When you look at the current market numbers, it is easy to see why the Obama administration would want to have another tax credit, but is that the wise thing to do. When the government continues to intervene with the markets, does it just delay the inevitable? If it does, any potential “crashes” are more likely to be even worse.
Check out the original transcript about the potential home buyers tax credit.
HENRY: Let’s end on two quick points. First of all, along the lines of this debate, there are some critics saying the federal government can’t keep up the intervention to try to prop up the industry much longer. Along those lines, you mention the $8,000 first-time home buyer credit expired a couple of months ago. Many people believe that’s why some of the housing numbers were so bad this past week. Is that housing credit now dead? Or does the administration think you should try to revive it to try to prop this industry up?
DONOVAN: Look, Ed, I think it’s too early to say after one month of numbers whether the tax credit will be revived or not. All I can tell you is that we are watching very carefully. I talked earlier about new tools that we will be launching in the coming weeks, and we are going to be focused like a laser on where the housing market is moving going forward, and we are going to go everywhere we can to make sure this market stabilizes and recovers.
Good for agents? Good for buyers? Good for sellers? Probably, but what will happen when this credit expires? We will see if it even happens.
