The Real Deal New York

Home builders concerned over future without tax credits

September 18, 2009 06:26PM

With home builder sentiment on the rise, some analysts are wondering whether the industry can maintain its positive momentum after the $8,000 first-time homebuyer tax credit expires. As CNBC‘s Diana Olick reported, the National Association of Home Builders/Wells Fargo Housing Market index rose to 19 in August (out of a 30-point scale), up from its all-time low point of 8 in January. While the index spells good things for construction, NAHB chief economist David Crowe said that many in the industry are concerned about the tax incentive expiration. “There are incentives to own, but there aren’t incentives to move now, to buy right now,” Crowe said. “That’s what the credit does — it moves that demand to a point where we can get the ball rolling.”

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