Housing starts declined more than economists anticipated in May, following the expiration of the first-time home buyer tax credit.
The bill is liberal with the definition of a first-time home buyer.
Miller points to the first-time home buyer tax credit of 2009-2010, when there was a surge in activity up until its expiration.
FORBES: How The New Higher Tax Rates Will Affect Luxury Housing
Earlier this week the feds sued two Miami preparers, alleging they falsely claimed the first-time home buyer's credit for dozens of clients.
Example: The first-time home buyer tax credit (available to those with a contract in place by Apr. 30) may have simply accelerated planned purchases of houses.
Policies have focused on short-run changes and gimmicks recall cash for clunkers and first-time home buyer credits rather than on creating conditions that are favorable to investment that raise productivity and wages.
Investors have been trying to stay afloat amid crosscurrents of conflicting economic data, yet it all boils down to one key question: Is the decline in housing a statistical anomaly related to the expiration of the first-time home buyer credit or is it a leading indicator of another sharp decline in the housing market?
At first, Congress didn't give the IRS authority to immediately reject taxpayers claims for the first-time home-buyer credit if they lacked proper documentation.
WSJ: Lawmakers Consider Expanding IRS Power to Flag Errors Before Audits
This can be rapidly remedied by reboosting the housing market, which a tax deduction on all (not just first-time buyer) home purchase down payments would effectively do.
It warns, however, that values may have merely received a boost from the spring season (home values typically have their best stretch as the weather warms) and the extension of the first-time-buyer tax credit that expired last month.
应用推荐