Comments on: State Governments Getting Hoodwinked By Home Builder Lobby

By: IR

IR — Wed, 13 Jan 2010 16:28:18 +0000

I have to agree with Jared on this. This sort of market distortion is rarely a good idea… As would become apparent when the rebate expired and the glut of unnecessary markets. Funding such a market distortion with taxpayer money merely adds insult to injury. Good post

By: Jared Horsley

Jared Horsley — Thu, 26 Mar 2009 15:49:43 +0000

I believe the tax credits are all short term thinking ideas. Of course they need to act but it will affect us in the long term..I guess we will see.

By: Sinthya

Sinthya — Mon, 23 Mar 2009 04:33:30 +0000

the California state tax credit is not limited to first-time home buyers.

By: Jayson

Jayson — Mon, 23 Mar 2009 00:56:34 +0000

I think most of these incentives are short term thinking and more of the same. I say let it be – all of these incentives get people into the market that shouldn’t be in the market. It’s horrible that some still think that it’s wise to make it so people can temporarily afford a home. I’ve heard plenty of future home buyers talk about using the tax incentives to help pay their monthly payments e.g. $3,000 per year will make my payment $250 less per month – OH NO! –

Even the loan modifications being done by major banks (like Chase) involve short term solutions i.e. low interest rates for 5 years, then they go back up (is this not an ARM?). What happens when they go back up?

I can’t blame home builders for trying to make it in a tough market, but what are we going to do in a few years when the tax incentives stop or the down payment assistance programs end? We should just try and figure out what the true demand for homes (and everything else) is and work to supply the true demand and not a demand influenced by creative policies.