The tax credit will certainly bring additional new homeowners into the market. According to an estimate by the National Association of Realtors, approximately 300,000 new homebuyers will enter the market due in part because of the tax credit.
In essence, a new homebuyer may look at the tax credit as a discount on the home price. For example, a $100,000 purchase on a new home effectively becomes a $92,000 purchase. So, if you are a first-time homebuyer make sure to see if you qualify for the ARRA tax credit, and make sure to act by the appropriate deadlines.