With $58,355,593 of tax credits already allocated, $101,638,616 in credits claimed, and 1,505 applications in a back-up position, the California Franchise Tax Board has stopped accepting applications for $10,000 tax credits for new home buyers in California.
∙ California Tax Credit For New Home Buyers [ca.gov]
Since this applies only to previously unoccupied homes, isn’t this basically a state subsidy of the home building industry ?
So that makes two government market distortions being curtailed : new home subsidies and foreclosure moratorium. If the Fed’s manipulation of interest rates tails off then this will only further depress the market.
It would be really interesting to see a gauge of the number of people reaching the point of no return(default) as these programs progress. As others have expressed here much of this government manipulation seems to be geared towards trapping new homeowners in their mortgage, creating a new class of private individuals to bail out the broken banking sector.
self serf ?
So I guess the price tag on those homes just dropped by roughly 10 Gs?