Although the current tax rebate, scheduled to end on April 30th, has helped many sellers get rid of some property, and likewise given buyers an incentive to take action, I do not see the long range benefits that are being proposed.
To think that a buyer is going to take on a 15-30 year mortgage just to receive a $8000 (plus their state's incentive) tax credit is ridiculous. Also, the fact that this is not money that the government is going to pay, should be at the front of every tax payers agenda. Old economics lessons teach that the government does not pay anything. Tax payers do. This money going out is going to come back out of every-ones pocket in the way of TAXES.
Just like the current health care issue, who do the officials think they are fooling to say that magically, everyone is going to get all of the medical attention a person wants, or everyone that wants a house can go out and buy property. Until we get the banks (and insurance companies for health care) to act in a reasonable and responsible way, we the tax payers are throwing gas on an out of control fire.