On the news tonight, they were talking about the head of HUD kicking around the idea of another home buyer tax credit. Why? Our Nation is beyond broke. We have tried this before and it failed. So, again, why?

There are buyers for homes out there that are ready to buy, but are waiting for this (or something like it). They feel it coming, so they are waiting. There are home buyers out there looking at homes who will most likely wait to purchase after hearing this news. There are also investors , doing what investors do, going with their research and gut. There are sellers wanting to move up, down, or out of state and are trying to sell their homes in a market dominated by foreclosures and short sales. All of the above, and every citizen in this country, will be harmed by another home buyer tax credit. Some buyers will pay less for a home, but as a whole, the real estate market will be falsely inflated again by a spike in sales, then a slump - until a new carrot is dangled in front of buyers. The problem with housing won't be cured by another tax credit. Another tax credit will just delay the market from equalizing.

We have come to the point where a large percentage of people will not buy unless there is an immediate government supplied reward for doing so. A classic "Pavlovian Response." Who could blame someone for waiting to buy, knowing a government bonus may be just around the corner? That government bonus is comprised of money that has to be paid by the rest of us, and future generations.

In a free market, supply and demand, minus outside influence, must prevail. Anything else will just lead to falsely inflated numbers. As a country, we are broke. Let's work on jobs first, then spending, then reducing the deficit (in any order we can). We should get our priorities straight, and let the real estate market be the real estate market. More government spending will only increase our debt and give us short term housing gains. Government should stay out of the market place and let the market place adjust itself.

Disclaimer: You will see previous posts on our blog about the old home buyer tax credit and we had increased sales during the previous home buyer tax credit period. I won't apologize for that fact. We did what we've always done, given great service to anyone who asks, and we've done that for the past 38 years. If the government gives another tax credit, our sales will most likely increase again. We have to run our business the only way we know how, but we will not push, ask, or beg any Senator or Representative for a new home buyer tax credit.

Be Sociable, Share!

No related posts.

Tagged with: •

Filed under: Home

Like this post? Subscribe to my RSS feed and get loads more!