When can we take housing off life support?
From the Wall Street Journal Blog:
Will the housing market finally be taken off Uncle Sam’s life-support service in 2010?
Don’t count on it.
Jaret Seiberg, a managing director at Concept Capital, a research firm in Washington, says the odds favor yet another extension of tax credits for home buyers. Those credits initially were set to expire Nov. 30 but then were extended to cover home-purchase contracts signed by April 30, 2010.
Congress might extend the credit through Nov. 30 or phase it out over six to 12 months, Mr. Seiberg speculates, adding: “We believe a phase-out is most likely because it would benefit housing markets but let Democrats argue they are fiscally responsible because they have designed an exit strategy that weans consumers off the subsidy.”