New Home Sales

[CA renter]

HLS,

Agree with everything you’ve said and would add that the $8,000 tax credit might push prices up by far more than $10,000.

As you know, if the full $8,000 is used by a zero-down FHA buyer, that buyer is now able to buy a $228,571 house if the seller offers a “credit” toward the closing costs. This is a buyer who would otherwise not be in the buyer pool.

It affects all FHA/3.5% down payment buyers all the way up the chain, too. Same potential price boost of $200K+ due to the free govt cheese.

If a buyer is planning to put 20% down and use the $8,000 as part of the down payment, it increases their spending power by $40,000.

Essentially, the credit boosted prices by giving everyone that additional spending power (I refuse to call it buying power), and it brought a whole bunch of otherwise unqualified buyers into the buyer pool. Just think of the artificial demand that created!

$40,000 is probably the very **minimum** boost to prices as a result of this tax credit. The true benefit (to SELLERS) is probably in the $100K-$250K range, and may be more, IMHO.

[jpinpb]

Nearly 1.8 million households have used the credit at a cost of $12.6 billion, according to the Internal Revenue Service.

[jpinpb]

Nearly 1.8 million households have used the credit at a cost of $12.6 billion, according to the Internal Revenue Service.

[jpinpb]

Nearly 1.8 million households have used the credit at a cost of $12.6 billion, according to the Internal Revenue Service.

[jpinpb]

Nearly 1.8 million households have used the credit at a cost of $12.6 billion, according to the Internal Revenue Service.

[jpinpb]

Nearly 1.8 million households have used the credit at a cost of $12.6 billion, according to the Internal Revenue Service.

[1stimebuy]

I for certain have overbid comfortably 15K ~ 18K over asking on some decent properties knowing that I might get that 18K from gov’t. But I still haven’t won anything for my 6 month house search.

The more I think about it, tax credit sounds more like another subsidy to the banks and sellers, and NOT for the buyers. (!!!!) Now that the houses are 30~50K more than it was last year, I wonder how everyone will play after this tax credit expires… I can’t wait for it to expire, and yet also afraid buying house in san diego is now completely out of reach again.

All I have now is this stupid cash in CD that collects near 0% interest, and high cost rentals. It’s frustrating 🙁

[1stimebuy]

I for certain have overbid comfortably 15K ~ 18K over asking on some decent properties knowing that I might get that 18K from gov’t. But I still haven’t won anything for my 6 month house search.

The more I think about it, tax credit sounds more like another subsidy to the banks and sellers, and NOT for the buyers. (!!!!) Now that the houses are 30~50K more than it was last year, I wonder how everyone will play after this tax credit expires… I can’t wait for it to expire, and yet also afraid buying house in san diego is now completely out of reach again.

All I have now is this stupid cash in CD that collects near 0% interest, and high cost rentals. It’s frustrating 🙁

[1stimebuy]

I for certain have overbid comfortably 15K ~ 18K over asking on some decent properties knowing that I might get that 18K from gov’t. But I still haven’t won anything for my 6 month house search.

The more I think about it, tax credit sounds more like another subsidy to the banks and sellers, and NOT for the buyers. (!!!!) Now that the houses are 30~50K more than it was last year, I wonder how everyone will play after this tax credit expires… I can’t wait for it to expire, and yet also afraid buying house in san diego is now completely out of reach again.

All I have now is this stupid cash in CD that collects near 0% interest, and high cost rentals. It’s frustrating 🙁

[1stimebuy]

I for certain have overbid comfortably 15K ~ 18K over asking on some decent properties knowing that I might get that 18K from gov’t. But I still haven’t won anything for my 6 month house search.

The more I think about it, tax credit sounds more like another subsidy to the banks and sellers, and NOT for the buyers. (!!!!) Now that the houses are 30~50K more than it was last year, I wonder how everyone will play after this tax credit expires… I can’t wait for it to expire, and yet also afraid buying house in san diego is now completely out of reach again.

All I have now is this stupid cash in CD that collects near 0% interest, and high cost rentals. It’s frustrating 🙁

[1stimebuy]

I for certain have overbid comfortably 15K ~ 18K over asking on some decent properties knowing that I might get that 18K from gov’t. But I still haven’t won anything for my 6 month house search.

The more I think about it, tax credit sounds more like another subsidy to the banks and sellers, and NOT for the buyers. (!!!!) Now that the houses are 30~50K more than it was last year, I wonder how everyone will play after this tax credit expires… I can’t wait for it to expire, and yet also afraid buying house in san diego is now completely out of reach again.

All I have now is this stupid cash in CD that collects near 0% interest, and high cost rentals. It’s frustrating 🙁

[Author]

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