Even the original tax credit define a "first time homebuyer" as one who hadn't owned a primary residence in 3 years. A few months ago, I sold a home to someone who'd owned primary residences for probably 15 years, but had lost his most recent one to a foreclosure a bit over 3 years ago. He's a happy first-time homebuyer.
Without getting too raunchy, imagine if Congress applied the same definition of "first time" to a woman (or man) getting married. "Yes," she's whispered to her husband to be. "This will be my first time." On the wedding night, the new groom quickly figures out that maybe she's "been there, done that" before. "But," she says, "I've only been married a couple of times. And the last time, only for eight years. And I only lived with him for five straight years. So, according to the decisionmakers in Washington, this is my first time."
I can't say I blame consumers for not being able to figure this one out.
Regarding the real question, I think a lot of potential buyers know about this credit and are waiting for it to go away so they can get real pricing for a change.I find it amazing that congress would be so stupid as to include everyone except those who bought at the peak in this program. But that is another thread.