Serving Maryland, D.C. and Northern Virginia
I disagree that tax incentives will "energize" the market. If mortgage rates below 4.0 can't energize the market, then there are not many incentives that will. There still are tax incentives to buy new homes and that market is still nearly dead.
I also think that brainless mortgage underwriters have also been keeping people from getting top dollar for their homes. The pendelum has swung too far the other way and now they don't want to approve many good loans--especially in rural areas.
The only thing that is needed is jobs, new jobs, better paying jobs, and job security for those who HAVE jobs!