I know of a married couple that intends to sell their house. And they are smart. They intend to wait until this summer, when some new government incentives (and disincentives) kick in. As I understand the program, first time home buyers will be eligible for an $8,000 tax break as well as 4% interest rates.
All righty then. Our government will soon be implementing a program that give advantages to first time buyers, coupled with disadvantages for those who have previously purchased a home.
So what should a home seller do? Well, the home sellers that I know intend to target first time home buyers in their marketing efforts. Now these folks don't really care whether the buyer of their home is a first time buyer or a hundredth time buyer. What they want is to sell their house for as much as they can. And they think that they can get the most out of first time buyers. And in my view, they may well be correct.
The net result of this new government favoritism toward first time buyers? First time buyers will be able to bid up the price on homes because they have a significant, government provided subsidy. This will artificially drive up the price of homes. Thus second time home buyers will have to pay more for a house.
Why the government should punish people because they have owned or currently own a home is beyond me.