That 15K Biden is Suggesting May, or May Not, Be A Great Thing.....

Read an article from one of my housing drips and I'm just copying and pasting here so you know it's not just my opinion but from the National Association of Realtors.

It does, however, make complete sense to me.

"The news over the weekend that former Vice President Joe Biden is now president-elect elicited positive reactions from several real estate leaders who saw the upside for the housing market.

Biden’s housing proposals include a $15,000 first-time homebuyer tax credit and he will focus on fair housing and affordable housing issues. He is also likely to appoint a new head of the Federal Housing Finance Agency.

The National Association of Realtors Chief Economist Lawrence Yun told HousingWire that the $15,000 tax credit is good news since it can go a long way in terms of helping first-time homebuyers and minority households. However, that’s only one part of the solution.

“But that’s not the full story, the full story is that stimulating the demand just by itself I think is insufficient,” Yun said. “Right now the housing market is facing a significant housing shortage. So if we add further stimulus to the demand without addressing the supply… it will simply bump up the prices even higher.”

Yun said that the ongoing housing supply shortage is getting worse and not enough homes are being built to face the demand.

“We simply have not been building a sufficient amount of homes,” Yun said. “We also need to address the supply side, how do we bring more supply? It’s going to take some time, but just adding more fuel to the housing demand without addressing the supply would just simply mean that home prices could accelerate much higher and partly negating some of the benefits of the $15,000 tax credit.”"

Back to me now. I do love tax credits for first time buyers, it's helped many of my clients in the past. But, I am not a fan of it until we get more homes on the market, because, like Yun says.....we'll just drive up prices more with more demand if there is 15k in someones pocket to buy. We Need More Inventory.