The Real Deal Miami

Homebuyer tax credit: part II?

August 31, 2010 01:45PM

Does the U.S. housing market need more propping up with a second installment of the homebuyer tax credit? Shaun Donovan, secretary of the Department of Housing and Urban Development, isn’t saying yes, but he isn’t saying no, either. According to CNBC’s Diana Olick, there’s a push amongst politicians, particularly in Florida, where the housing market has really gotten pummeled, to recreate the spring’s surge in home sales that was largely attributed to the federal government-supplied boost. While some would argue that the housing market needs to correct itself without an artificial stimulus to recover in the long term, Olick says another homebuyer tax credit could clear out some excess inventory quickly. Still, the official word from HUD is that “there are no discussions underway to revive the credit.” [CNBC]