NYT: Spurt Of Home Buying As End Of Tax Credit Looms

March 30, 2010 at 8:31 am  ·  Category: Macro Economics, Real Estate

Real estate agents say buyers and sellers are hurrying to take advantage of the tax credit, which is worth up to $8,000 for home buyers.  But the last-minute rush is also prompting some foreboding about what will happen to the market on April 30 when the credit ends — and whether it is too risky to let it end at all.

James M. Poterba, an economist at the Massachusetts Institute of Technology, calls this “the exit strategy problem.”

“If you have a short-run program to stimulate demand, it’s always tricky to figure out how you gently remove it without going off a precipice,” he said.

– David Streitfeld, “Spurt Of Home Buying As End Of Tax Credit Looms”, The New York Times, March 30, B1

Posted by Greg Feirman  ·  Trackback URL  ·  Link
One Response to “NYT: Spurt Of Home Buying As End Of Tax Credit Looms”
  • Unfortunately the credit itself is not a large enough number when compared to Manhattan RE to make a difference to a home buyer. However, more importantly the equity markets and the success of wall street bonus season have buoyed Manhattan.

    NYC Condos for Sale  ·  Apr 11, 2010 at 4:53 pm  ·  Permalink

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