One of the things that I have preached on here and when talking to others about the housing market is that first time buyers will be the key to the turnaround. There are way to many potential first time buyers sitting in apartments waiting for the market to find it’s base. For for those moving up from their starter homes to bigger homes, they need buyers.

Well, the housing bill that was signed last week is the first step to the process. There is a provision in it providing a $7,500 tax credit to first time home buyers in it. While this will not make a huge dent in the expensive markets, for most of the country it will mean about a 5–10 percent discount on a first home.

Pulte Homes is jump starting the competition for these first time home buyers by adding another $7,500 in discounts for all buyers. Take into consideration the discounts already out there, this should bring buyers into the market that have been sitting on the sidelines. Once they enter the market, velocity will ensue and stabilization will occur.

Richard Dugas, president and chief executive of the Bloomfield Hills-based homebuilder, said the idea is to bring more focus to the tax credit and get waiting buyers off the fence and into new homes. About 40% of home buyers are making their first purchase.

“Our plan is to match the tax credit with a $7,500 offering of our own, and we will extend it to all buyers, not just first-time home buyers,” Dugas said on a conference call Monday hosted by the National Association of Home Builders. via the Detroit Free Press.

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