Homebuyers’ tax credit has foes, backers
By David Streitfeld, NEW YORK TIMES NEWS SERVICE
When Congress passed an $8,000 tax credit for first-time homebuyers last winter, it was intended as a dose of shock therapy during a crisis. Now the question is becoming whether the housing market can function without it.
As many as 40 percent of homebuyers this year will qualify for the credit. It is on track to cost $15 billion, more than twice the amount that was projected when Congress passed the stimulus bill in February.
In the view of the real estate industry and some economists, all that money is well spent. They contend the credit is doing what it was meant to do, encouraging a recovery in the housing market that is gathering steam. Analysts say the credit is directly responsible for several hundred thousand home sales.