{"id":12341,"date":"2010-06-22T09:27:18","date_gmt":"2010-06-22T16:27:18","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=12341"},"modified":"2010-06-22T09:27:18","modified_gmt":"2010-06-22T16:27:18","slug":"first-time-home-buyers-tax-credit-the-morning-after-the-governments-gift-to-new-home-buyers-a-house-immediately-worth-8000-less-than-they-paid-for-it","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12341\/first-time-home-buyers-tax-credit-the-morning-after-the-governments-gift-to-new-home-buyers-a-house-immediately-worth-8000-less-than-they-paid-for-it\/","title":{"rendered":"First time home-buyers tax credit, the morning after: “The government’s ‘gift’ to new home-buyers? A house immediately worth $8,000 less than they paid for it.”"},"content":{"rendered":"

From the National Review<\/em> Online<\/a>:<\/p>\n

Things are looking worse on the housing front, with a severe drop-off in existing home sales following the expiration of the home-buyer tax credit. It’s hard to overstate how stupid this policy was. The government marketed it as a measure to boost residential real-estate prices by providing new home-buyers with a tax credit in the neighborhood of $8,000. Did you see the ubiquitous ads featuring the couple that gets an envelope full of cash from Uncle Sam? The idea was to convince potential home-buyers that they were the ones who would benefit from the subsidy, when in fact the opposite was true. The tax credit was a subsidy for sellers, not buyers, allowing them to increase their asking price (or avoid decreasing it) by $8,000.<\/p>\n

The government’s “gift” to new home-buyers? A house immediately worth $8,000 less than they paid for it, and falling fast thanks to the sharp drop-off in demand that accompanied the expiration of the tax credit. Gee, thanks, Uncle Sam! I’m not sure the “predatory lenders” Obama likes to talk about ever did anything that sketchy.<\/p><\/blockquote>\n

This is good, but it’s still wide of the mark. As everyone here knows, the purpose of the tax credit was to churn transactions, so that realtors and their brokers could get paid. You’ll see more evidence of this later this week, as the NAR pushes you to lean on your congresscreep to support Harry Reid’s extension of the expiration deadline for the credit. There are still 180,000 unclosed transactions out there, and that means 180,000 commission checks held hostage by the demons of time. We can’t have that…<\/p>\n","protected":false},"excerpt":{"rendered":"

From the National Review Online: Things are looking worse on the housing front, with a severe drop-off in existing home sales following the expiration of the home-buyer tax credit. It’s hard to overstate how stupid this policy was. The government marketed it as a measure to boost residential real-estate prices by providing new home-buyers with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251,29,5,30],"tags":[],"class_list":{"0":"post-12341","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"category-group-therapy","8":"category-real-estate","9":"category-supplanting-the-nar","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":14590,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14590\/more-thrilling-real-estate-math-from-the-national-association-of-realtors-how-much-did-first-time-home-buyers-benefit-from-their-8000-tax-funded-subsidy-can-you-count-to-negative-15000\/","url_meta":{"origin":12341,"position":0},"title":"More thrilling real estate math from the National Association of Realtors: How much did first-time home-buyers benefit from their $8,000 tax-funded subsidy? Can you count to negative $15,000?","author":"Greg Swann","date":"May 11, 2011","format":false,"excerpt":"You read that right. On average, recipients of the $8,000 federal housing subsidy lost $15,000 on the homes they purchased using the subsidy as their incentive. From SmartMoney.com:The government's recent $8,000 cash incentive for first-time home buyers has proved even more costly for recipients than for taxpayers, according to data\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10203,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10203\/the-net-effect-of-government-intrusions-in-the-real-estate-market-is-to-create-a-standing-wave-of-foreclosures-amid-steadily-declining-home-values\/","url_meta":{"origin":12341,"position":1},"title":"“The net effect of government intrusions in the real estate market is to create a standing wave of foreclosures amid steadily-declining home values”","author":"Greg Swann","date":"November 1, 2009","format":false,"excerpt":"This from my Arizona Republic real estate column: As I write this, the entire real estate industry is on tenterhooks, waiting to see if the $8,000 first-time home-buyers tax credit is going to be extended. It's not really a tax credit, it's a taxpayer-funded subsidy, a \"gift\" extracted by force\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10155,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10155\/driveby-economics-8000-price-cut\/","url_meta":{"origin":12341,"position":2},"title":"Driveby Economics – $8,000 Price Cut?","author":"Tom Vanderwell","date":"October 22, 2009","format":false,"excerpt":"I had coffee yesterday with a long time friend of mine who works for a local title company.\u00a0\u00a0 We were talking about a variety of things, including some of the new stuff I'm working on on the web. The topic came around to the $8,000 First Time Home Buyer Tax\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8526,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8526\/8526\/","url_meta":{"origin":12341,"position":3},"title":"$8,000 Tax Credit Advance Friend or Foe?","author":"Scott Cowan","date":"May 20, 2009","format":false,"excerpt":"I have been following the $8,000 Federal Tax Credit with great interest this year. Currently it is the most talked about topic that I am discussing with potential home buyers. There is a lot of interest in receiving $8,000 when a first time buyer files their taxes for 2009. Now\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9306,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9306\/why-should-you-enlist-a-buyers-agent-to-help-you-buy-a-home-because-youll-get-a-much-better-deal-even-if-you-pay-full-price\/","url_meta":{"origin":12341,"position":4},"title":"Why should you enlist a buyer’s agent to help you buy a home? Because you’ll get a much better deal — even if you pay full price","author":"Greg Swann","date":"July 25, 2009","format":false,"excerpt":"This from my Arizona Republic real estate column (permanent link): Are home-buyers best served by the vigilant efforts of an experienced buyer's agent? Consider a transaction we have in play right now. The buyers are a young couple, about to be married. They have about $10,000 in cash. With a\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8909,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8909\/getting-a-15000-tax-credit-when-you-purchase-your-next-home-could-be-as-easy-as-stealing-candy-from-a-baby\/","url_meta":{"origin":12341,"position":5},"title":"Getting a $15,000 tax credit when you purchase your next home could be as easy as stealing candy from a baby…","author":"Greg Swann","date":"June 14, 2009","format":false,"excerpt":"This from my Arizona Republic real estate column (permanent link): So we started with a $7,500 tax deduction for first-time home-buyers. But that didn't juice the real estate market enough, so we bumped the number up to $8,000 and made it a full-blown tax credit. If you owe $8,000 in\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=12341"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12341\/revisions"}],"predecessor-version":[{"id":12342,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12341\/revisions\/12342"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=12341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=12341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=12341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}