Some of my clients want to purchase a home now. The interest rates are low and because of the economy your dollar goes further than it did in years past. They are too excited and as a result they are letting their emotions control their decisions instead of thinking logically. I advise my clients to step away from the house emotionally and think critically about several questions before making the final decision.
The idea that giving a tax credit to first-time home buyers would enable significant numbers of families to enter the housing market, stimulating a faltering real estate market, was probably a pipe dream from the outset. In practice, very few families would receive enough cash through the credit to make buying a home feasible. In any case, the credit is really only an interest-free loan from the IRS which must be repaid, either through increased taxes in subsequent years or from proceeds of the sale of the residence.