Posted by Jonathan J. Miller -Friday, February 10, 2006, 12:01 AM
Last week, NYC’s Mayor Bloomberg made a gloomy forecast of the housing market over the next few years. General consensus reaction to his speech was its apparent attempt to lower expetations of those who wanted to spend the surplus, generated largely due to tax receipts generated from the housing market.
Other Politicians like Jeb Bush of Florida [Fl Politics] have used the [excess real estate related tax revenue to pull out all the stops [Orlando Sentinel]]((http://www.orlandosentinel.com/news/local/state/orl-capview0506feb05,0,5982351.column?coll=orl-news-headlines-state) and try to cement his legacy [Tampa Tribune] in his eighth and last year in office.
Politicians have realized an important lesson in this most recent housing boom. Budget surpluses have the amazing ability to help politicians push their agenda without giving away too much in the process.
That being said, I wonder if the positive political mind-set for housing-related incentive programs will grow more favorable over the next few years as the momentum of the past five years of the housing boom carries over, no matter what actually happens to the market.