Washington is getting a lot of pressure from the National Association of Homebuilders and realtors. While we’re sure these individuals are lobbying for the good of mankind, we suspect they’re also covering their own behinds here. Once the new homeowner tax credit expires, there’s fear that the results will mirror that of the “cash for clunkers” program. That program led to a large drop in sales in the auto industry.
There’s additional speculation that the decline will catapult more catastrophes. For example, home equity prices could decline to as much as 30%, banks could fail, and additional market declines. However, the subprime bubble proves that realtors don’t necessarily have their client’s interest at heart. The IRS states that one has to “close on a new home by Nov. 30, 2009, to qualify for the tax credit”. So, it’s due to expire in a little over a month. Hmmm…
Do you think the homebuyer tax should be extended? Or should we end it and yank the band-out off for a harsh but quick pain?
*Image courtesy of Mike Kemp.
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