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Americans May Get $9,600 Tax Credit to Buy a Home

4 points by harambae 3y ago

bell-cot 3y ago
> ...prices remain historically high, propped up by lingering low supply. In June 2023, the median listed price for a home in the U.S. was $448,000. As of January 2024, this was $409,500, ... Housing in modern America looks far too much like a millionaire's-only game of musical chairs. This proposed tax credit sounds nice, but it won't create any more housing. What is actually needed is enough chairs for everyone.
elmerfud 3y ago
Because the last time the government futzed around in the housing market with financial incentives for home buyers it worked out so well for everyone. Are people's memories really this short? The last thing we need is the government dumping money into the housing market in the form of incentives for buying. Unless this is their plan to simply bankrupt more people. A better plan would be to put incentives on the building of a new housing. To actually increase the house inventory especially these starter home house inventory. Allow supply to increase so home prices will level off maybe even reduce in some idiotically priced areas. This way we don't get into another pump and dump cycle by sticking people into homes that they can't afford through some sort of incentive plan. Because if $10,000 is going to incentivize you to buy a home in this market you can't afford that home already.
chiefalchemist 3y ago
...which will further drive up demand... Which further drives up prices. In the end it's a wash, or less. The winners are the banks as the interest on the $10k over 30 yrs adds up nicely. When are we going to learn that such political-based manipulations don't solve problems, they exasperate them. We need to fix the (lack of) supply side. Unfortunately, those in a position to do so are the ones owning so much of the current inventory and they're not about to act in ways that ultimately lowers the value of their current investments.
nojvek 3y ago
Baaaaad idea! A Better policy is to get the city planners to open up X% more land to medium and high density housing. We have a supply problem, not a demand problem. Same reason why UBI makes everything expensive. An economy needs universal basic distribution.
Ekaros 3y ago
That is one way to inflate the bubble further and pump money to those holding these mortages...

4 points by harambae 3y ago

> ...prices remain historically high, propped up by lingering low supply. In June 2023, the median listed price for a home in the U.S. was $448,000. As of January 2024, this was $409,500, ... Housing in modern America looks far too much like a millionaire's-only game of musical chairs. This proposed tax credit sounds nice, but it won't create any more housing. What is actually needed is enough chairs for everyone.

elmerfud 3y ago

Because the last time the government futzed around in the housing market with financial incentives for home buyers it worked out so well for everyone. Are people's memories really this short? The last thing we need is the government dumping money into the housing market in the form of incentives for buying. Unless this is their plan to simply bankrupt more people. A better plan would be to put incentives on the building of a new housing. To actually increase the house inventory especially these starter home house inventory. Allow supply to increase so home prices will level off maybe even reduce in some idiotically priced areas. This way we don't get into another pump and dump cycle by sticking people into homes that they can't afford through some sort of incentive plan. Because if $10,000 is going to incentivize you to buy a home in this market you can't afford that home already.

chiefalchemist 3y ago

...which will further drive up demand... Which further drives up prices. In the end it's a wash, or less. The winners are the banks as the interest on the $10k over 30 yrs adds up nicely. When are we going to learn that such political-based manipulations don't solve problems, they exasperate them. We need to fix the (lack of) supply side. Unfortunately, those in a position to do so are the ones owning so much of the current inventory and they're not about to act in ways that ultimately lowers the value of their current investments.

nojvek 3y ago

Baaaaad idea! A Better policy is to get the city planners to open up X% more land to medium and high density housing. We have a supply problem, not a demand problem. Same reason why UBI makes everything expensive. An economy needs universal basic distribution.

Ekaros 3y ago

That is one way to inflate the bubble further and pump money to those holding these mortages...