Goodbye, Tax Credit
Experts are predicting that the expiration of the first time homebuyer tax credit won’t affect sales. Apparently, people will buy even if they can’t get the tax break.
It’s a bit bizarre. On the one hand, 90% of consumers surveyed said the tax credits have helped the market. But then 65% of them said the end of the credit won’t have an effect.
Now what kind of sense does that make? Having the tax helps, but ending the tax doesn’t hurt.
Weird, don’t you think?
Unless the government is smarter than we think and the point is actually pretty obvious.
Think about it: the government is all about jump-starting the economy. And in the minds of consumers the only better reason to buy than a tax credit is . . . the end of the tax credit!
It’s the difference between seeing these two ads:
1) Sale at Macy’s
2) Sale at Macy’s ENDS TODAY!
The second one is obviously a much bigger call to action. So with the tax credit about to expire, the average buyer thinks, “Oh no, I’m about to miss my last chance at free money!”
You get enough people thinking like that you’ll give the economy a huge boost. Sure they’re counting on people continuing to buy in the coming months, but March and April are sure to be big boom months.
What’s your take? Comment and weigh in.
Apparently the actual most important factor in buying a home, for most people, is low mortgage rates. That ranked higher than tax credit or even low prices!
And don’t worry, the survey concluded by asking people if they still saw owning a home as a good investment. And 75% said that the whole crisis hadn’t shaken that belief.
So there’s still room to push sales with strong consumer belief in value and getting them a great interest rate as your most important assets.
Let me know what you think.
