Big Bump in July Housing Sales
The federal government’s $8,000 tax credit for first-time home buyers appears to be doing its job: according to NAR, sales of single-family homes increased 7.2% in July from a month earlier.
So, what will happen come Nov. 30, when the credit is set to expire?
I’m hearing — and reading — increasing speculation that the credit will be extended, or even increased.
While that would provide continued support for the housing market, especially at the low end, policymakers have to be careful about any such extension.
That’s because prospective buyers who are expecting even bigger carrots down the road are likely to wait rather than buy now.