Now that the Federal Government has extended the first time home buyers program, and expanded it to allow access by a greater number of individuals, will we return to traditional lending standards when the program is completed? If we do not, are we then creating a new housing bubble? Are we creating the start of a new bubble with the use of this program?
I don’t believe that anyone familiar with the industry would deny that Banks were only too eager to loan whatever amount borrowers wanted, then for the most part, package and sell the loans. The result is that nationally, we now have approximately two trillion dollars in loans that will probably as of now, never be repaid, at least not in full. So if we are not building a new housing bubble by the use of this program aimed at buyers, but we are supporting their purchase with tax dollars, are we then, through the use of this program, artificially keeping home prices high?
During the past “housing boom,” it was not uncommon to hear people talk of how much their property was increasing in value. Now it has become clear that these increases, unrealistic due to the reality of market forces, have caused the government, us, you and I, to steal monies from future generations to repair the unrealistic expectations of the past. However, unrealistic expectations abound, and local, state, and national governmental authorities need to reevaluate their taxing strategies to reflect the uncomfortable reality that we will have to learn to do with less.
If you have any questions regarding property taxes in Ulster County, please feel free to contact us.