Positive Economics of Home Buyers Tax Credit Elude the General Public

Based on the negative reactions of many online readers to the potential extension or expansion of the tax credit for home purchases, it is clear that the average consumer does not understand the positive impact of tax credits versus the negative impacts of taxation and give-away stimulus funds. There is a perception that Realtors want the tax credit to continue in order to increase commissions and artificially raise home prices that have plummeted in recent years.

I can't deny that right now I'm working 4 jobs to pay my mortgage and would love to have a more robust real estate market, but the basic economics are that what is good for me personally in the housing market is exponentially better for the overall economy.

A tax credit keeps money in the consumer pocket which allows him or her to make decisions about spending or investment without govenment interference. When that money is spent or invested, it creates income for another consumer who then is part of a tax base that is larger and stronger and returns funds in the form of income taxes to the government far in excess of those funds lost in the original tax credit.

The rules and regulations for appraisals and lending have gotten so stringent that many of my good clients can't begin to qualify for loans and if they do have a contract on a home, the appraiser can make it null and void with an overly conservative appraisal. So much for free wheeling home sales to unqualified buyers due to an extended tax credit and artificially stabilized home values.

Jobs and the economy will rebound when people can freely buy and sell their homes in response to requirements to move for jobs, illness, retirement or changes in family situations and when the disaster of millions of foreclosures ends. Get on board to ensure that our representative do the right thing on this proposed measure and approve the home buyers tax credit extension.