November 6th, 2009
Real Estate Expert Skeptical of Homebuyer Credit Extension
Assistant Professor of Real Estate Urban Land Economics Morris Davis is critical of a recent move by Congress to extend a tax credit for first-time homebuyers and offer a new credit to people who already own a home but are looking to move.
Davis told the Milwaukee Journal Sentinel that home prices were stabilizing without further intervention and cautioned that extending the first-time buyer credit will be costly and only pull forward home sales that would have happened at a point in the future anyway. “There’s just a fixed pool of potential first-time homebuyers. So that means if you incent them to buy today, they are not going to be available to buy tomorrow,” said Davis.
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