Double-Dipping in California

Here at Redfin, we’ve sometimes been skeptical of tax credits.

But there’s no denying what happens when a Californian can qualify for an $8,000 federal tax-credit by getting under contract on a home by April 30, then qualify for another $10,000 California tax-credit by closing on that contract after May 1. Everybody tries to buy a home right away. In the Bay Area last week, the number of folks who wrote an offer through Redfin increased 95% over the prior week.

It won’t last. And nobody seems to care that it won’t last. But for now, it’s a feeding frenzy down there…