I completely agree with you, Jay.

The prices of homes have begun to normalize, I think.

And yes, I recognize the irony of agreeing with you about the 8K after just filing my paperwork to collect it a few weeks ago.

There were some legitimate reasons to forestall having the "long run" effect slam the whole real estate market at once during the last year when everything else was in such flux. How much and to what degree in which locations varied... but that immediate crisis stage has passed; it is time to move on.

"the credit is keeping house prices from finding their true level, which is bad for the economy in the long run"

Keep repeating these words people.

While I agree, I think you need to do a better job at explaining exactly HOW the tax credit costs taxpayers $43K per house. Otherwise it looks like the number is being pulled out of the air. In other words, back up the statement with facts, because quite honestly, I don't understand how that is the case.

My house has been on market 6 months.
It is an upper entry level home in south jersey. I hope they END this credit, so I can make my offer of cash back at closing
stand out from other homes in area. I think this is hurting my efforts at selling.
(But then again,most of this stimulus has
hurt us that were responsible enough to
live within our means)

Dan,

The Brookings report link explains it perfectly well, with the simple math and the assumptions made.

Why should all that get repeated here, when it's a click away?

I have 30 years experience in the real estate industry and can say I have never seen a market like this. It is clear that the tax credits did help spark some life into the market and convince first-time homebuyers to get off the fence....

There was a study done by the Rosen Group that showed the tax credit has been the primary reason buyers have returned to the market...

I included the info from the survery as well as info and a link for Fix Housing First, a coalition that has been working to extend the tax credits, in a post I did at:

http://realestateconsumernews.com/home-sellers/homebuyer-tax-credit-has-been-primary-cause-of-recent-return-of-buyers-to-market-according-to-study/

Sad. Just sad.

I'm house-hunting in the Twin Cities from a distance, with a planned move in the spring. We're looking at a wide price range in homes ($75k-300k), since we haven't made up our mind about whether or not to move into a completely cushy house, or do a bit of fixing up. Our down-payment is sizeable (around $60k--give or take what happens over the next few months), and if the $15k credit actually materializes, it gives me the willies to think that I could potentially purchase a liveable home with a very, very small loan. Even though I'm edging closer and closer to the plunge of home-ownership, I still remain against the credit because I want to encourage *responsible* home-purchasing.

Although in fairness, the $8k credit did serve as an extra bonus for friends moving in early December. They found their "have to have it" home last week, put in an offer, and were accepted. But I really believe they would have purchased, regardless of the existence of the credit.

And as an addendum, I read a blip last night about potential fraudulent use of the $8k credits. The NYTimes has an article in today's paper about the topic: "Fraud Reported in Program to Help New Homebuyers".

One possible outcome would be breaking the strangle hold the Nat'l Assn of Realtors has on residential real estate. Following heavy judgments for negligence and constructive fraud, these incompetent nincompoops who know nothing meaningful about houses were able to waive away such claims by recommending rubber stamp home inspections from a complicit home inspection industry, which performs its "handyman walk-through" for hundreds of dollars, while simulating real evaluation in their reports through enumeration of what should be obvious to the average 10-year-old in pseudo-technical language. The NAR and ASHI are themselves as much scam artists as any sleazy mortgage broker, and the buying public would be better served by fee-based listings and having a real evaluation performed by several contractors in their respective fields, instead of driving around town with some hag who doesn't know a rafter from a truss and some self-styled generalist of an inspector with his bagful of toy gadgets.

Dan, don't be so shy!
Tell us what you really think ;)

Laura, I hope you're staying on the St Paul side. Almost any of the streets that intersect Lexington (N of Grand) will have you in a decent school district (which is MN code for good snow plow route) and within your price range.

Also look at the fraud coming into the system

if you exclude the 90K some frauds, its really $60K a home sale!

http://www.fundmymutualfund.com/2009/10/first-time-home-buyer-tax-credit-fraud.html

Bravo.
Let's get back to following the Constitution, and 90% of our biggest problems will go away.

St. Paul's where the homes in the lower end of the price range were located. We did stumble across a neighborhood in Minneapolis where the prices were comparable and the homes were cute, but the best bets are in St. Paul. :)

Thank you for your continued bits of encouragement. It's appreciated, and will keep you general posted.

Then fix the sensational headline to read "extra house".