What impact will there be when $8k credit expires?

[Stephen N.]

I'm worried there will be a big impact. Any of you concerned?

[Hazel L]

I am so relieved that the tax credit is ending! If you have a basic understanding of economics, then you know that the tax credit is a superficial band aid that is making the market worse--it is freezing homes at unrealistic prices and costing a ridiculous amount to execute.

Did you know that it costs the government (and actually us taxpayers) $43000 to implement the tax credit? You can refer the article from CBS here for this number:

http://moneywatch.bnet.com/saving-money/blog/home-equity/does-the-8000-tax-credit-really-cost-43000-per-buyer/1123/

An article from MarketWire has observed that "In the months following the extension of the tax credit, price reduction levels have since declined." The tax credit is keeping prices at their inflated level, interfering with the market's ability to adjust itself, defeats all the logic of economic principles.

You can't fix a supply problem by superficially influencing short-term demand; in the long term it will take the real estate cycle longer to normalize because of these interferences.