WASHINGTON – The National Association of Home Builders has called on Congress to move quickly to enact a second round of economic stimulus directed at the housing sector. NAHB believes the best policy is to create a tax credit for the purchase of a home.
“The biggest bang for the buck most likely would be provided by a temporary home buyer tax credit,” NAHB Chief Economist, David Seiders told the Senate Finance Committee. “Tax credits for the purchase of a home are a means of eliminating excess inventory, relieving some of the pressure on falling housing prices and ending the waiting-on-the-sideline strategy some potential buyers have adopted in response to overly negative media stories concerning the future of the housing market.”
“The U.S. housing market now is in the contraction phase of the most pronounced housing cycle since the Great Depression,” said Seiders. “Single-family housing starts are already down by 60 percent from their peak at the beginning of 2006 and the bottom is not yet in sight. Congress can, and should, do more.”
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