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View Full Version : Is the housing tax credit distorting home prices?




Howard_Roark
09-18-2009, 05:52 PM
Many people have been telling me to buy a home using the $8,000 tax credit, however my feeling is that its distorting the market and that house prices are at least $8,000 artificially higher. Prices are set by supply and demand so if there is massive demand created by the credit then prices must be artifically high, especially in lower priced houses.

Johnnybags
09-18-2009, 05:55 PM
It will not have an end date, as a matter of fact it might go higher if the bankers get their way. There is no rush. They more than likely will expand the program, no way around it. The so called deadline was to get people off their arse. Just like extending unemployment, I guarantee this will be extended.




Many people have been telling me to buy a home using the $8,000 tax credit, however my feeling is that its distorting the market and that house prices are at least $8,000 artificially higher. Prices are set by supply and demand so if there is massive demand created by the credit then prices must be artifically high, especially in lower priced houses.