Currently, first time homebuyers recieve a $7,500 tax credit that must be paid back in installments over a 15 year period. According to the National Association of Realtors (NAR) a tax credit for ALL homebuyers without a promise to repay could result in enough home sales to make a significant reduction in the housing inventory.

According to the NAR, under the first time homebuyer tax credit, 264,000 families meet the requirements, however with a tax credit to all homebuyers 2.2 million families would meet the requirements. Additional incentives to potential homebuyers could indeed stabilize the home prices and bring stability back to the economy.

Would more incentives, above and beyond lower interest rates and lower home prices, entice potential homebuyers enough to jump start the economy again? Would it end up costing the Treasury Department less money in the long run or is time the answer?