Homebuyer tax credit

The tax credit for first-time homebuyers may be extended, making millions more Americans eligible. That makes this a good time to look into how the program has worked so far and what might be in the offing.

Real estate groups like the National Association of Home Builders say the credit has revived home sales, driven prices up, and created hundreds of thousands of jobs. WPBF-TV in West Palm Beach, Fla., reports that local real estate agents are thrilled about the possible extension. Some agents say half their sales in the past several months have been to first-time buyers, according to WAFF-TV in Huntsville, Ala.

But some economists are skeptical about the potential impact on the housing market, according to the Baltimore Sun, in part because sales are typically slow in the winter months. There's also concern about the real cost of the credit, based on estimates that most people taking advantage of it would have bought a home without government help.

The Senate has tentatively agreed to extend the $8,000 credit until April 30 and to offer a $6,500 credit to some current homeowners willing to buy a new home. But as the Wall Street Journal reports, there are also new strings attached aimed at preventing fraud. In response to a government watchdog report that some 'buyers' were as young as four years old, the extension requires applicants for the credit to prove they're over 18.

What's the real estate picture in your area? Has the credit made a measurable difference? Let us know if you've done stories along these lines and we'll add links.

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