Dumpy_house

This comes as no surprise. I had a long conversation with a friend about this the other day. We were standing on her front driveway and she was pointing at all the homes in her neighborhood that were bought over the past month by young people, she suspected this was because of the tax credit. My neighbor sold his house to a first time homebuyer in 5 DAYS!

Sales and homebuilding are being fueled in part by a federal government tax-credit of up to $8,000.

In Sioux Falls, first-time homebuyers accounted for 41 percent of the sales in August, said Barton Hacker, chief executive officer of the Realtor Association of the Sioux Empire.

We’ll see what happens after this credit is over with. I suspect you will see a dramatic drop in home sales. I hope realtors are smart enough to open a savings account.

7 Thoughts on “41% of home sales in Sux Falls were due to tax incentive

  1. Ghost of Dude on October 2, 2009 at 10:32 am said:

    It beats having a bunch of empty homes and a lot of renters who can afford to pay a mortgage but can’t come up with the closing costs and a down payment.

  2. Ain’t no ifs, ands or butts about it, L3wis. It’s part of Economic Law called Elasticity of Demand.

    Like Cash for Clunkers if you artifically inflate demand in one sector, over time when the incentive goes away or is maxed out the demand snaps back to well below what a normal level is.

    Detroit is already reeling from it, GM is off what? 40% or more and just announced it’s mothballing Saturn. Watch how this along with some other chickens coming home to roost makes this 4th Quarter a total economic trainwreck that will carry well into next year if not beyond.

    Which, of course, will set the table for Crapulous Bill 2.0.

    BHO is well on his way to going from “the One” to the “One and Done”.

  3. Ghost of Dude on October 2, 2009 at 1:26 pm said:

    BHO is well on his way to going from “the One” to the “One and Done”

    Two things:

    “The One” meme is perpetuated by republicans who are still trying to claim Obama is some sort of messiah figure to the left and or the antichrist. The McCain campaign even tried to imply the antichrist thing in a campaign ad. It isn’t working.

    Two, unless the GOP can come up with a candidate people want to vote FOR, instead of voting against Obama, the party will be left out of the White House for another four years. Remember Bob Dole?

  4. GoD:

    “The One” meme is perpetuated by republicans”

    Not quite, Dude. The Oprah coined the term first:

    “For the very first time in my life, I feel compelled to stand up and to speak out for the man who I believe has a new vision for America,” and told the audience of 15,000 said, “I am here to tell you, Iowa, he is the one. He is the one!”

    http://gothamist.com/2007/12/09/oprah_calls_oba.php

  5. Costner on October 2, 2009 at 7:18 pm said:

    Yea I’m not so sure about “the one”, but I’m as equally unsure if Oprah was intending for her words to be taken in a messianic tone. Sounds to me as if she just using common terminology for a guy she wanted to win… much like many of us do when we speak of our favorite quarterbacks.

    On the other hand the comments about Obama being the messiah or “Obamessiah”… those are clearly from the right. In fact the talk radio clowns still haven’t quite given up on that one.

  6. The Minuteman on October 2, 2009 at 9:34 pm said:

    Not quite, Dude. The Oprah coined the term first:

    And those who perpetuate it are…?

  7. USA - Love it or Shove it on October 3, 2009 at 6:12 am said:

    “And those who perpetuate it are…?”

    Of course it’s you and me and the hundreds of Real Americans that are left in the republican party. It’s our job to remind these godless liberals of the FACT that they worship the Obamessiah even if they aren’t aware of it.

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