How will the expiration of the federal housing tax credit affect the real estate market in Houston?
Talkington recalled last year’s cash-for-clunkers program, which provided a spike in auto sales that dropped when the program ended. Similarly, while the housing tax credit helped absorb excess inventory, Talkington called it a “one-trick pony” that probably has little residual impact. But Johnson expects sales to pick up again this fall. The housing tax credit helped to reduce inventory levels and with foreclosures slowing, consumers will begin to feel more confident, he said. Q: Is credit as tight in Houston as it is across the nation? Are local businesses taking creative steps to get the money they need? A: Credit is tight everywhere, said Amin. It isn’t just Houston. Lending institutions have cash to lend, he said, but have grown more cautious about their due diligence. In years past it was important to know your banker, but today that personal relationship won’t get you the loan, Amin said. Instead, loans are based on balance sheets and other quantifiable financial factors. Mayor
