With the housing industry facing continued problems, the National Association of Home Builders has called on Congress to enact a second economic stimulus aimed directly at the housing sector.
In particular, according to a spokesman, NAHB believes creating a tax credit for new home purchases would help jump start the depressed housing market.
“The biggest bang for the buck most likely would be provided by a temporary home buyer tax credit,” said NAHB Chief Economist David Seiders. “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.”
Because the recently enacted Economic Stimulus Act of 2008 fails to address the root cause of today’s economic and financial downfall - the tremendous reduction in home sales and starts, NAHB is urging Congress to act swiftly, he said.