David Kocieniewski at the NY Times looks into how much the homebuyer tax credit ultimately cost:
Though the Treasury Department and the real estate industry have termed the program a success, helping 1.8 million people buy homes, many tax policy experts say it has been singularly cost-ineffective: most of the $12.6 billion in credits through end of February was collected by people who would have bought homes anyway or who in some cases were not even eligible.
…That means for each new buyer who was truly lured into the market by the credit, the federal government paid more than $30,000.
“The tax credit helped to stanch the price declines, which had substantial benefit for the entire economy,” said Mark Zandi at Moody’s Economy.com.
Based on the 12 properties that my company sold or put under agreement since January 2010, I would say 3 were prompted by the homebuyer tax credit. I’m not sure if that’s the norm for Boston brokers. Any thoughts?