That is an implication of the claim in a Washington Post article that a $7,500 first-time home buyer tax credit is intended to keep house prices from falling. In large parts of the country the housing bubble pushed prices out of the reach of most moderate and middle income families. The correction from this bubble was again making prices affordable. While it is unlikely that this tax credit will actually prevent the market adjustment, it could slow the process. In any case, the Post should have pointed out the perverse implication of this policy. It is not clear that many voters would approve of congressional efforts to use their tax dollars to keep house prices artificially high.
--Dean Baker