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Cheaper Prices—More Than Tax Credit—Motivating Home Buyers

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Yes it boils down too the political system has always been corrupt and it's continuing onward there will never be a panacea,until everyone learns to do with less...... Let's all make sacrifices together in our daily living!!!!!!

Barnes,p of KY 11:32PM June 06, 2010

In the months following 9/11, I made the observation that people were jumping 2 or 3 price ranges above what they could actually afford because the Fed dropped interest rates to artificially stimulate the housing market (and economy). I predicted then that we would have a real problem when those rates adjusted and people would no longer be able to afford what they had bought.
Our current situation is even worse. Artificially propping up weak market segments never produces the desired long-term results. Even when the housing market "recovers", we'll be crippled under a crushing mountain of foreign debt which will stifle economic growth for decades.
Bleeding taxpayers for more stimulus money is pointless and ineffective.

Mark Graham of MO 3:23PM January 20, 2010

When is someone going to check the broker-investor, real estate investors actions on the real estate market? My questions are a few, one, why does a person or couple visit as many as fifteen to twenty homes before they can buy a house? The other is how the real estate agent has people bid on a home as it is an auction increasing the cost of the home to buy.
Depending on who owns the mortgage. The person or couple must apply to each bank of mortgage company for loan approval and qualify for the house loan. That is applying to each company with the personal information on hand for each company. The amount of information out in the open for many to see. I have seen sold signs on homes and later found out that the houses are for 'RENT'. What is the reason for this cause?

of 11:34AM January 20, 2010

I find it interesting that the same people who approved the $700 Billion Bank and Auto Bail outs seem VERY concerned about the paltry $20 Billion going back to the people who actually pay the taxes in the first place.

Nick Mason of MO 8:16PM December 23, 2009

Cash for clunkers should have excluded foreign cars..... the most purchased car with the cash for clunkers money? TOYOTA what is wrong with this picture. This is the thing, the government is giving out money to fuel OUR economy yet the money is being used elsewhere.....
As for the 8K first time buyer money, this is another not thought our plan..... customers that need the money to buy, can't get the money until after they buy. What's wrong with this picture? yet the Higher end homes, have no assistance, 8K won't even cover the escrows, yet these homes are stale on the market and not being moved. You need income and assets to own a home, why can't the higher end homes get some sort of incentive too?

ines menendez of FL 11:47AM December 23, 2009

The only thing that will fix this country is buying U.S. made goods and creating jobs here at home. I noticed that Korea and Japan also had a cash for clunkers program similar to the one we had here but they excluded American made vehicles from their program. Nothing new there. They have practiced one way trade policies for years. When we will wake up in this country. Americans can't seem to connect the dots. So sad.

Gary of MI 8:16PM November 22, 2009

Just as Cash For Clunkers created some media attention, and looked like a rousing success, only to have reality set it, so will it be with this bad idea. It is simply wrong for the government to take tax dollars to try to stimulate a market which has been over-stimulated for years already. It will get some unknowing buyers to jump, especially with real estate agents talking about the market having hit bottom, and lenders stating that rates are more attractive than ever. Those buyers will be foolish, in my opinion, as prices will continue to drop. The best thing the government can do is to let the market find it's own level, as it will anyway. It will just take longer with these kind of false incentives.

Ken Egan of OR 4:18PM November 20, 2009

Perhaps in Des Moines an $8K incentive will move people off the sidelines. Here in Los Angeles $8K wouldn't even cover closing costs on a home in a good neighborhood. It's a complete non-factor. I want to buy a home, but I realize that if a $500K home nudges down in value just 2% ($10K) that's already more than this little $8K tax credit.
The problem isn't that the credit isn't large enough...it's that it's unnecessary. If it were larger I would run further away from buying a home for fear of what would happen to my home value once they eliminate the subsidy.

JayC of CA 1:20PM November 19, 2009

The correct model for housing is the medium house price = 3 x medium income, locally. But in many cities the price is more than 10 times the income. Even for a combined two-income family, the house price still needs to be within 4 times the after tax incomes. The way overvalued housing prices in the once hot areas need to be and will fall further until they are affordable to the local medium incomes. Tax incentive of $8,000 can not offset the $100,000 over value. Only idiots would buy houses more than 4 times their incomes, as lured by the tiny tax credit.

JCInter of CA 12:20PM November 19, 2009

It amazes me that the geniuses in Washington don't realize that this slight of hand will only put upward pressure on prices and send more people to the sideline. If you want the market to work ... just let it!

Sigi of CA 3:37AM November 19, 2009