With the supply of available houses hovering near all-time lows, both demand and prices for homes remain elevated.
In last night’s State of the Union speech, Joe Biden proposed a $10,000 tax credit for first-time homebuyers and a $10,000 credit for sellers of starter homes.
“Generally, these have the effect you’d expect, which is they tend to stoke demand,” explains Financials analyst Josh Steiner in this clip from The Call @ Hedgeye. “The problem is there’s just not supply.”
“If you basically increase demand in absence of supply, the price just goes up even more. So, the interesting thing will be to see whether the $10,000 seller tax credit actually has an effect in terms of unlocking that entry-level home inventory.”
