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<p>[QUOTE=&quot;SilverSurfer, post: 1743112, member: 21603&quot;]Well, I&#039;ve been thinking about the economy, and how can I not.&nbsp; Deficits through the roof, the money supply tripled in just one year.&nbsp; Business&#039; bailed out and held up with crutches.&nbsp; As this is a blog, I intend to let it out, if you disagree, that&#039;s fine.</p><p><br /></p><p>The topic I&#039;ve been thinking about is real estate.&nbsp; In particular, the first time owner tax break.&nbsp; I don&#039;t know how much it is, but I think it is either $6000 or $8000.&nbsp; I also understand that it ends at the end of April.&nbsp; So, did the tax break help real estate?&nbsp; I think it did, but with crutches.&nbsp; </p><p><br /></p><p>Inflation priced, houses are still very expensive.&nbsp; It appears that instead of letting free markets manage themselves, by letting over priced houses fall to a level that is reasonable on a historical basis, the prices have been propped up with tax breaks.</p><p><br /></p><p>I don&#039;t understand the idea of saving $6000 to $8000 in taxes buying a house that is $40,000 overpriced.&nbsp; Where is the savings in that.&nbsp; A prediction....when the tax incentive expires, if the economy doesn&#039;t pick up (read that as employment increases) house prices will continue to drop.&nbsp; After all, most people have taken advantage of the tax break and the prices haven&#039;t really dropped as much as they should have.&nbsp; With the economy as it is, the price of houses should be lower then historical norms, yet they are still above historical values.&nbsp; What will happen later this year when less people are buying houses?&nbsp; Will the prices fall or will the level off to where they currently are at, or will the continue to go up?&nbsp; My guess is that they will continue to fall, if the market really is free regulating.[/QUOTE]</p><p><br /></p>

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