Forbes Online Asks: Will The Home Buyer Tax Credit Help?

Will The Home Buyer Tax Credit Help?

Francesca Levy, 06.08.10, 06:25 PM EDT

The government incentive gave real estate a short-term boost, but critics wonder if it was worth the money.

t looks like a strong recovery is underway in the real estate market: Contracts on new homes surged in April, and the National Association of Realtors' pending home sales was up 6% from the previous month, and 22% from a year earlier.

But don't let appearances fool you. Gains in new home sales were likely due to last-minute bargain-hunters scrambling to take advantage of a federal tax credit for new home buyers, before it expired on April 30. And after that rush passes, sales are expected to fall during the usually active summer season.

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