Builders are asking for a home buyer tax credit, not just for buyers of new construction, but all home buyers. The credit amount would be 10 percent of the home price, capped at 3.5 percent of FHA loan limits ranging between about $10,000 and $22,000. Unlike the $7500 tax credit offered last summer that has to be paid back over time, the home buying tax credit would be available at the time of closing.

In addition to a buyer tax credit, the proposal seeks a government-funded mortgage buy-down, in which a fixed rate loan would be available at 1 percent less for the first six months of 2009. This can create a great opportunity to buy property and get financing at a low interest rate. That's a nice savings on top of an already discounted real estate market. Low price, low interest rate, and tax savings are definitely incentives to buy property.

The premise behind this proposal is to stimulate home buying and help save the housing market, which in turn will save the economy. By stimulating home buying, you knock down the excessive inventory, put a floor under home prices and restore home equity, which in turn could help the foreclosure predicament.

Buying homes, new or old, creates and maintains a lot of jobs with so many people involved in the chain. From builders, Realtors, curtains to carpet, restocking the fridge to hanging the family photos. And services: Movers, landscapers, painters, plumbers, electricians, trash haulers, storage facilities.

Does it help the big builders in the end? Yes it does, but it’s not a direct bailout. Big builders only represent 20 percent of the home building business, and they are, so far at least, in large part weathering the storm. It’s the little guys (80 percent of the market) who are going out of business at an alarming rate.

Today, no one knows if this "buyer's market" will last as long as the "seller's market" did. All new home builders know is the usual "supply and demand" thing. Factors such as land costs, material costs and labor costs are increasing, so is negotiation with many banks. There are always opportunities for a smart home purchase if time permits you to look and be patient.