Does the 8K tax rebate create an environment where prices aren't as low as they would be otherwise

orange hammer
Contributions:103

It just seems to me that the $8000 rebate is creating a lot more buyers, and thus
a lot more competition for houses, especially those in my price range of 150K.
If that's the case, economic common sense would suggest that sellers will be less
inclined to lower their price and the $8000 tax rebate might be negated by the
consequential higher housing price. I am wondering if it might be better to wait
until after the tax rebate expires, when there will be less buyers competing,
Thank you for your thoughts.

Flag content

January 21 2010 - US

E-mail Share RSS

Answers (1)

Best Answer

BMFPitt
Contributions:1207

You are absolutely right. But even now, the majority of people who were willing to buy for their $8k bribe had already bought before the original expiration date, so the extension was just a taxpayer-funded free money giveaway without actually causing any demand for houses.