Here is a new study - just released - that proves what everyone on the front lines already knows - that the first-time home buyer tax credit has proven to be an effective tool to jump-start the US housing market. Issued exactly two months before the credit is due to expire, the study, entitled, "Examining the First-Time Homebuyer Tax Credit," offers empirical analysis on how the tax credit is reducing inventories while stabilizing prices. As Washington policy-makers evaluate the success of the entire stimulus package passed earlier this year, the study illustrates that the tax credit is an unparalleled standout, with stimulative effects far beyond a single purchase. Further, the study clearly demonstrates the urgency of passing a temporary extension and expansion of the credit to prevent a halting of the housing recovery and a slowing of the economy's momentum. You can see the executive summary of the study here and can read the full study here. And here are a few graphs that visually depict the dramatic success of the credit.
