- Nobody has actually said that more tax credits are in the pipeline
- A leading homebuilder is against the idea
- Is this just more media spin?
Those who are expecting Secretary for Housing Development Secretary Shaun Donovan’s recent statement regarding additional support to unemployment homebuyers to translate into renewed tax credits should use their breath for more useful things like cooling their porridge. This is what Donovan actually said in response to a media question:
“I think it’s too early to say after one month of numbers whether the tax credit will be revived or not. All I can tell you is that we are watching very carefully. I talked earlier about new tools that we will be launching in the coming weeks and we are going to be focused like a laser on where the housing market is moving going forward. And we’re going to do everything we can to make sure that this market stabilizes and recovers.”
The previous round of tax credits that expired on April 30 definitely helped encourage house purchasers. Unfortunately, the growth in sales that this inspired translated into a massive downward blip when the tax credit initiative ran out of team. The shock this caused inspired Washington to announce fresh HAMP initiatives that include renewed re-financing efforts and short-term loans to unemployed borrowers. The question from the floor could become more newsworthy than the media representative expected – already there is talk of prospective buyers holding back in anticipation of a benefit that may never materialize.
Leading players in the real estate industry had already backed off from calling for tax credits with this in mind. Chief Executive of homebuilder PulteGroup Inc. summed corporate feeling up nicely when has addressed the media earlier this month. “Almost regardless of how future demand plays out, we still believe that the tax credit had to end. We need to know the true level of demand without government stimulus distorting the market so that we can continue to properly position our business for ongoing improvement.”
Given the severity of its potential, why has nobody in Washington slapped the rumor down? The strongest response heard to date was from Robert Gibbs, Whitehouse Press Secretary, again in answer to a question. “I don’t — while I have not seen, obviously, a final list, that is — I think bringing that [tax credit] back is not on — is not as high on the list as many other things are.” In so doing, Robert Gibbs actually said nothing at all.
Spin-doctors are always careful not to say something that might depress the public, and to say everything that has the opposite effect. Could it be that the Press Secretary had an eye on the mid-term elections when he fielded the question? News brought to you by www.foreclosuredatabank.com (a foreclosed property listing site).
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Written by Alex Rolim.
