Until, our government gets it's house in order and folks can feel comfortable that they'll continue to have a job and have faith in our economy in general, don't expect much improvement.
Then there's also the folks that are underwater that can't sell their homes to buy another. As a rule, a short sale takes them off the market for a least two years.
Happy funding, Rudi
A. Been there. Done that.
B. Most buyers assume it'll remain. I doubt it'd be a stimulus to say that a decades-old tax deduction will remain in place.
C. Remember: At one point that "first time home buyer tax credit" was extended to people who'd owned their homes for more than--I think it was--5 years.
D. Low interest rates? Don't think so, with 30-year rates now around 4% and 15 year rates around 3%. Maybe we can update that old saying erroneously attributed to Herbert Hoover about "a chicken in every pot." (See http://www.hoover.archives.gov/info/faq.html#chicken ) Promise "A granite countertop and stainless steel appliances in every kitchen." That seems to get the attention of home buyers. To eliminate buyer uncertainty, how about some guarantee: "Buy this house, and you can sell it back to us at any time in the next 10 years and get back every penny you paid for it." That might work, but who'd guarantee it?