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It may have helped a few markets but I'd argue it made the housing crash worse. It certainly did here.
What happened was at the expiration of the credit buyers that had plans to buy over the next 6 to 12 months rushed and bought before the deadline. Instead of creating new buyers, it pulled buyers forward and created a void in the normally busy summer months. People that had to sell had a shortage of buyers and were forced to drop the price, rent the home, or let it go into foreclosure. The price reductions snowballed and led to a massive price drop where we had previously been relatively stable.
Our friends bought as first time home buyers in 2009. A small bubble was created and burst a couple of years after they bought. They sold in 2019 after many major improvements for the same price they had bought and they were lucky to get that.
What is the definition of "first time home buyer" .. in the past it was a person that hasn't owned a home in X amount of months or years. If I can take this credit to buy another house I will. I haven't owned since October 2019 as of now. It's free money, what the hell.. I'm back on the look for my next house. I plan to buy with no money down if I can and take advantage of low rates and let inflation work for me. Why pay cash when I can invest and take on responsible debt in an era of QE pumping?
Most of the industry follows the IRS definition, which defines a first time buyer as someone that has not owned a home in the prior 3 years.
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