The feature post by Richard Weisser stirred a thought as to why the First Time Homebuyer program has an inherent flaw by weighting the entry level homes.
Move-up sales or mid to upper level sales generally create additional transactions. The move-up buyer gets a bigger or newer home and sells the starter home thus creating 2 sales, and most importantly, allows the seller of the move-up home to buy in the top end market. Now you have at least 3 sales generated, whereas the first time buyer transaction only creates 1 sale.
Richards plan or any other plan that could encourage mid to upper level sales is what is needed to bring a real rebound to the market.