Bigger Tax Credit = More Home Sales?

Apparently low interest rates and reduced home prices aren’t enough incentive to get consumers to purchase new homes.

A recent survey by Weichert Realtors shows that increasing the tax credit for homebuyers to $15,000 and extending it to all buyers — not just first-time purchasers — will get more people to jump off the fence and buy a home.

Groups representing Realtors and homebuilders have been pushing lawmakers to boost and expand the tax credit to stimulate the housing market.

“The tax credit would increase home sales, which would cause inventories to fall and stabilize home prices and mortgage markets,” National Association of Home Builders First Vice President told a Congressional committee.

But will throwing extra cash at more consumers really be the key to help revive home sales?

I’m guessing that factors like job losses and business growth are more critical to the health of the overall housing market.

If a buyer doesn’t know how secure his job is, his appetite for committing to a hefty new loan isn’t going to be great.

Meanwhile, the current tax credit and favorable interest rates have done little to spur more home sales here in Massachusetts.

The Warren Group reported this week that home sales in May dropped to 3,256 their lowest level for the month since 1990.

Source: Warren Group/Banker & Tradesman

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



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