Comments on: Will the $8,000 Tax Credit Be Extended? http://www.tropicshoresrealty.com/blog/citrus-county/will-the-8000-tax-credit-be-extended/ MLS Listings and real estate information from Florida Sun, 01 Aug 2010 01:45:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Victor http://www.tropicshoresrealty.com/blog/citrus-county/will-the-8000-tax-credit-be-extended/comment-page-1/#comment-801 Victor Tue, 06 Oct 2009 22:51:58 +0000 http://www.tropicshoresrealty.com/blog/?p=7111#comment-801 Extending the Tax Credit is bad idea. As latest analysis has shown most buyers were going to buy anyways, only a minority has done it due to the credit. What this Tax Credit is doing, is to re-inflate the bubble because Sellers and Realtors are adjusting prices up as a reaction to buyers who have more money available. Let the free market do its job of cleaning this mess! Falling prices is not the problem, it is the solution. What we are going through is a correction (btw, that is good). We just can’t get us out of this mess by trying to re-inflate housing. At this stage, stimulating is equivalent to re-inflating the housing bubble. Eventually this program is going to have to end, and when it happens, we are going to have a crash, a hangover (just as for cash-4-clunkers). The bigger the Tax Credit, and the Longer, the harder we will fall again. This type of measures don’t create momentum, they just delay and send problems to the future. How can we be speaking of a "recovery" with all of this Government intervention? The government should stop trying to "help" with moratoriums and tax credits, eventually they will have to go away and the crash will come back with revenge (not to mention the extra debt acquired). Extending the Tax Credit is bad idea. As latest analysis has shown most buyers were going to buy anyways, only a minority has done it due to the credit. What this Tax Credit is doing, is to re-inflate the bubble because Sellers and Realtors are adjusting prices up as a reaction to buyers who have more money available.

Let the free market do its job of cleaning this mess! Falling prices is not the problem, it is the solution. What we are going through is a correction (btw, that is good). We just can’t get us out of this mess by trying to re-inflate housing. At this stage, stimulating is equivalent to re-inflating the housing bubble.

Eventually this program is going to have to end, and when it happens, we are going to have a crash, a hangover (just as for cash-4-clunkers). The bigger the Tax Credit, and the Longer, the harder we will fall again. This type of measures don’t create momentum, they just delay and send problems to the future.

How can we be speaking of a “recovery” with all of this Government intervention? The government should stop trying to “help” with moratoriums and tax credits, eventually they will have to go away and the crash will come back with revenge (not to mention the extra debt acquired).

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