First the real estate agents are getting nervous that their sales are lower and thus their commissions are lower. Now the state of New Hampshire is concerned because their tax revenue will be down. They collect a tax of the sale of property in the state and those reciepts are running 10 percent below the estimated total.

Ah, now it is the time for the law of unintended consequences to kick in. With real estate agents,  the lowering of sales will chase out the weak agents, but with the government losing revenue expect a less than intelligent plan crafted by a committee to try to fix the situation.

The poor people of New Hampshire. The state does not have a sales or income tax. In a typical politicians mentality look for the state to try to help generate revenue by adding one of these. Of course, that will also lower property values in the state as it will be more expensive to live there.

Blatsos said tax receipts on property sales are running about 10 percent below estimates. He said the state could end the year with $13 million to $21 million less than what it counted upon depending on what happens in the coming months.
House Ways and Means Chairman Norm Majors said if the trend continues through the year the hit to the state’s wallet could be as much as $40 million.
“I’m really worried,” he said. via the Union Leader

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3. Canadian Real Estate Sales Drops 17 Percent in 2008
4. Even Optimistic Real Estate Agents Worn Down By Slowdown
5. Lowe’s and Home Depot Struggle in Tough Real Estate Market