HUD Secretary: Who’s up for another homebuyer tax credit?

Ed Morrissey

What does an administration do when their gimmicky, taxpayer-subsidized economic interventions — they’re too ad hoc to be called policies at this point — run out of steam and show no sign of solving the underlying problems of the economy?  When they have no Plan B, they offer a repeat of Plan A, and in this case, a re-repeat.  HUD Secretary Shaun Donovan told CNN yesterday that the White House may back a third homebuyer tax creditin response to the lack of demand in the housing markets:

Shaun Donovan, Secretary of Housing and Urban Development, said Sunday that the housing market’s July woes were “worse than expected” and that the administration may support a new homebuyer tax credit.

In an interview on CNN, Donovan said the administration is “concerned” about the path of the industry. He defended the Obama administration’s record on supporting the housing market, amid new signs that the market is struggling alongside the broader economy.

Donovan did not rule out a further homebuyer tax credit to support the market. Congress passed a homebuyer tax credit to support first-time buyers. The credit has now expired.

“I think it’s too early to say after one month of numbers whether the tax credit will be revived or not,” Donovan said.

Too early?  It’s too late to get anyone to believe in it, especially after this summer’s crash.  The dive in sales and demand make this a buyer’s market, at least for homes with rational pricing.  Another tax credit is unlikely to result in much demand anyway; housing sales arebelow last year’s figures for a reason.

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