The recent Housing Bill passed by the House, besides creating the opportunity for home owners with risky loans to refinance with safer Federally backed loans, includes a $7500 tax credit for first time home buyers.
Will this encourage first time home buyers to forge ahead in this market? Apparently this sort of credit was offered before in the 1970's and was considered very successful in encouraging home sales.
First time buyers have until July of 2009 to make good on this offer. During the recent housing bubble, 35% of home sales were first time buyers. This group also generally includes an important demographic of the 25-34 year olds.
