$8,000 TAX CREDIT — A GOOD IDEA?

Now that the window is closing on the $8,000

first time homebuyers tax credit the government is mulling over the possibility of extending it.  Is this a good thing?  Do we want to continue to artificially prop up our housing market?  While this incentive may have brought more people into the housing market is it a good thing to continue?  Would people buy anyway based upon the affordability of home prices and the lower interest rates?

I’ve had people both want to close before it runs out and then I’ve had people say that it’s not a deal breaker for them.  I have very mixed feelings about the government (that means you and me) spending any more money.  We are a capitalist economy and while this is definitely a challenging time, hopefully, this too will pass.  The markets whatever they may be need to ride it out.  Consumers are still a little gun shy and it’s going to be a slow and painful recovery.

I believe there are still homes that will go into foreclosure and we’ll likely see those start to drop off.  If nothing else, this has been a huge lesson for everyone about spending beyond your means.  We need to get back to what’s important in life….friends, family, etc……and not worry so much about what the neighbors are doing or buying.  Then and only then will we begin to see a light at the end of the tunnel.