Gov. Arnold Schwarzenegger's proposed new $10,000 homebuyer tax credit is thrilling the real estate universe, but don't think it's a done deal.
Opponents, who include economists and advocacy groups, are weighing in. Their point: it's a poor use of money in a state that's whacking community college budgets and health programs for poor kids.
"The experts have all concluded that (credits) are ineffective and largely reward people for homes they would have bought anyhow," said Jean Ross, head of the California Budget Project, a policy advocate for lower-income residents.
Last Wednesday, Los Angeles economist Chris Thornberg said the federal $8,000 tax credit is stimulus enough for the California housing market. Then Thursday, economist Jeff Michael, director of the Business Forecasting Center at Stockton's University of the Pacific, said he agreed.
Many think the proposal's popularity with buyers; builders and real estate agents will carry the day. But with deficits still raging, this may be a big fight.
--Call The Sacramento Bee's Jim Wasserman, (916) 321-1102 or email him at [email protected]. Read his blog on real estate, Home Front, at www.sacbee.com/blogs.