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The 2009 market presented a unique opportunity for first-time homebuyers. Homes were more affordable than they have been in years, interest rates hovered near historic lows, and the federal tax credit helped more than 1 million people become homeowners nationwide.

Unfortunately, the federal tax credit for first-time homebuyers is set to expire next month on Nov. 30. Yet research shows that the First-time Home Buyer Tax Credit arguably has been the most successful component of the federal government's efforts to stimulate the U.S. economy. 

According to a study conducted by the California Association of Realtors to gauge the role the federal tax credit played in the California market, nearly 40 percent of first-time homebuyers reported they would not have purchased a home without the tax credit. Nearly 70 percent of recent first-time homebuyers surveyed said the tax credit was "the most important "ora "very important" factor in their decision to buy a home.

As the expiration date for this successful program looms, REALTORS® are taking action by contacting their congressional representatives, and urging them to extend this vital home-buying incentive.

You can do the same, it’s easy to do.  Ask your congressional representative to vote for extending the First-time Home Buyer Tax Credit through 2010 and to include all home buyers-- not just first-timers. Historically, housing has led the nation out of economic downturns, and can do so again. Clearly, the tax credit played a critical role in driving home sales this year and in making the dream of homeownership a reality for many. By contacting our congressional representatives, we can make a difference in Washington, and help ensure the successful passage of this critical legislation.

source: California Association of Realtors Newsletter