It just depends on the buyer. I had to tell one buyer of mine last week that I felt they should wait since it was rumoured that she may get orders early next year. The tax credit would come in handy for her but the risk was too high. I have other clients who are trying very hard to find a house in time (just wrote 5th offer for them - mulitple offer situations) because they will be here for a long time and like the idea of having a built in emergency fund. Their rent is more than their mortgage payment will be and they can get their own place. Most of my clients are planning on using the money to pay off bills, establish an emergency fund, make upgrades to the home they buy or all three. I don't know of any agents suggesting a higher list price due to the credit so I don't see prices inflated for that reason but you are right that sellers in the first time home buyer range should be told that not only is the year going to be winding down but the end of the tax credit will take the wind out of some buyers sails. I also don't think that any agent is going to be able to convince someone to buy a home these days with some 'urgency' speech but you'd be surprised how many buyers have heard about it but didn't know what it was or that they actually qualified for it until we explain it! Maybe it's that the average person isn't used to getting a break..

Dan I don't know about Yorktown, but in No Va, in the "starter home" price range, we have multiple buyers for every sale. Just this afternoon, one of my fellow agents said he had 3 townhomes going on the market in the coming days; and FOUR of the agents that overheard this - including me - jumped asking questions (how much? where? short sale? traditional?). We were thrilled. We are working with people and getting bid out and bid out of deals, our buyers are crying - literally - about "losing the home of their dreams" in a bidding war. Prices are going up and buyers are dealing with things that, quite honest if I were a buyer, I don't think I'd have had the tolerance for - like the short sale process. I wonder if that will subside after the expiration of the tax credit, but who knows. It has been something that's been steadily building for a year now in my area - for a solid year.

Lots of people will think agents are talking this up and trying to create the illusion that the market is changing; and that the national data you're looking at that was collected months ago, without intimate knowledge of the market, tells the real story. Believe what you want. But, the market is changing, and you may have already missed the bottom.

Beyond that, don't try to time the market - youll lose. Buy when it is right for you and your family; and buy for the long term so you can ride the tides of the market. Read David Bach, Automatic Millionaire Homeowner (note: this does not say overnight millionaire - it's real advice for real people).

Good luck.

I think Buyers should "get while the gettin is good". who knows what will happend after Dec 1? We are already seeing the market pick up significantly. Though not reflected in the data yet, I can tell you subjectively, that Buyers are out looking and we are seeing multiple offers on fairly priced houses.

As for the effects on the sellers, we are seeing well priced properties in good condition seller more quickly and for slightly higher prices than the end of '08 and beginning of '09. As I have no real data yet to back that up, I was thinking to myself that prices on the Peninsula are rising, and one of my Buyers just voiced that out loud last week, which helped her to decide to stop looking and make an offer. She said she has been watching data on Trulia and Zillow for some time and based her decision on that.

Another factor: because of the government intervention, mortagage lenders are encouraged to work out a loan modification for seller who are behind on payments, rather than foreclose. There has basically been a hold on foreclosures, which has decreased inventory. That has raised the interest of buyers (and perhaps prices) in those "traditional" sales. Another subjective indicator of market improvement: My home inspector reported he has not inspected a vacant home in 2 weeks-- everything has been owner occupied, where earlier this year, almost all of his inspections were on vacant properties.

My concern for folks who wait is the interest rate. As housing prices rise, so will the interest rates. Right now, we are still rates in the mid to upper 4's -- that is unbelievable!! Again, who knows how long that will last? The decision to buy is based on a lot of personal factors, but if anyone is even considering purchasing for the first time - or moving up--it doesn't hurt to check out the facts: call your friendly neighborhood lender and see exactly what your monthly cost would be with the low rates along with your tax deductions for mortage interest. See what fits into your budget, then go online and see what you can afford. Is it better than where you live now? Do you want to start building equity? If you haven't owned property in the last 3 years, would a check from Uncle Sam for $8000 help you?

Boy, I wish I was first time buyer right now-- I can think of many ways to sepnd that check!

In this "overpriced" market there are many great deals to be made right now. As a buyer you say you see no urgency to buy. I do agree that the pot has gotten sweeter to try to stir things up and it might get even sweeter still but we're seeing increased activity in the market and houses are selling every day right now. You mentioned those that took the incentive last year look foolish but who will look foolish if all the incentives are taken away next year and didn't take advantage of them now?

It's like the stock market - if I sell now I might miss out on the price going up more, but if I don't sell now the price might go down. The only way we know for sure is if we wait and see. By that time it's over one way or another. If you wait and the price goes up awesome! But if the price goes down you just missed the boat. If you're in the market to purchase now, evaluate your situation and your needs; short-term, long-term, investment, etc.

Today we're in a strong buyers' market; what reason could there be for a ready, willing, and able buyer NOT to buy?!? Today buyers have choice of homes, incredible interest rates, and all sorts of incentives! I guess we can always wait for that sellers' market to come back and have to fight for a home, forget about home inspections, pay more than appraised price...