The income tax credit means that people largely buy the most expensive home they can get. This has a very serious effect on the market value of real estate, and

The income tax credit means that people largely buy the most expensive home they can get. This has a very serious effect on the market value of real estate, and means that the cost of housing increases non-linearly with the number of people in the middle income bracket. Those extreme housing cost increases are result of the tax credit, and an increase in the number of people able to take advantage of it. Were unemployment to rise, the price of real estate would similarly drop non-linearly. The price of your house is extremely volatile, don't let anyone convince you otherwise.