I am of two opinions when it comes to extending the first-time homebuyer tax credit.

ONE. I think this round should end on November 30th as scheduled.  Designed to encourage people – with good credit, good income – to go ahead and buy, we have seen a jump in these last two months of buyers getting on board before the program pulls anchor.  If you extend it now, the “time is of the essence” push will expire and sales will slow.  Go ahead and allow this last month and a half of sales to occur.

TWO. If the Feds do decide on another home buyer tax credit, give it a couple of months.  Wait until April or May and then give it to ALL home buyers.  I don’t think it has to be increased to $15,000 as it’s now being proposed by the bankers and realtors associations … $8,000 will be just fine if it’s open to everyone.

This article highlights Washington Post Columnist Martha White’s objections to an extension,

White goes on to say, “The credit also artificially inflates the value of eligible homes sold by up to $8,000, leaving the buyer with a debt that’s greater than the value of the property.” Hmmm… sounds like a familiar scenario that didn’t end well the last time it played out.

I can’t see where that comes from, to be honest, especially since we’ve seen home values nose-dive in the last two years.  Really?  It inflates the value of eligible homes?  It must not be in my part of the country this is happening in.  We *are* seeing debt greater than the value of the home, but that was from out-of-control sales two to six years ago… not from a home buyer tax credit.  What am I missing here?