Housing Stimulus was modified yet again - Legislation Passed by Congress

The so called "American Recovery and Reinvestment Act" (don't you just love the names they come up with for legislation?) also known as the Economic Stimulus Bill passed both the House and Senate yesterday and now awaits Presidents Obama's signature.  He undoubtedly will sign it next week. The housing stimulus proposal that Georgia Senator Johnny Isakson put forth was included in the final bill but altered substantially from his vision and recommendations.  According to the National Association of Realtors, the housing stimulus in the final legislation is summarized as follows:

• $8000 tax credit -  to reduce the home buyer's income tax obligation - any unused portion will be refunded in the form of a check
• Available to a first time home buyer (defined as not having owned a home in the last three years)
• For a principal residence purchased from January 1st 2009 through December 1st 2009

Will this have any effect on the housing market? I would imagine that it will help some first time buyers get off the fence and make a commitment to purchase. Is this going to magically return health to the real estate market? No. Consumer confidence about the economy as a whole is critical to the real estate market. People shy away from making large purchases when their confidence about the economy is low and they fear potential job loss. The economic environment will improve over time as it always does (please no more "help" from the government) and as it does the real estate market will improve. Expect the real estate market to remain challenging for the next few years but there are always good opportunities to be found in any market.  Remember, even if you sell and get less than you want for your home, you can make it up and then some if you are purchasing another home. Keep your spirits up!