By WaPo | Pro Builder
President-elect Joe Biden’s proposed tax credit for first time homebuyers aims to assist with an initial down payment, but brings with it the possibility of stretching the housing market even thinner. Inventory remains at a historic low and the overall market continues to feel the effects as home prices increase more than 15%. Adding even more buyers into the mix could hurt first time buyers by further pushing up home prices and increasing demand, says The Washington Post. Biden’s permanent, refundable tax credit for first-time buyers, called the First Down Payment Tax Credit, would credit buyers $15,000.
We asked David Howell, a real estate industry expert and executive vice president and chief information officer of McEnearney Associates in Washington, to discuss the implications of the possible first-time home buyer tax credit.