Extension of the first-time homebuyer credit?

There is no question that the popular first-time homebuyer credit has had a positive impact on the housing market.  Currently my team is working on 11 purchase transactions and 7 of them are first-time homebuyers.  How many of these people would not be buying if it weren’t for the $8,000 incentive?

Data out this morning from the S & P Case Shiller home price index showed that home prices rose modestly in 18 of the top 20 housing markets in the US.  Surely the tax incentives and low interest rates have helped to stabilize the housing market.

Since the first-time homebuyer credit has been such a catalyst in the housing market many people are concerned about what will happen after 12/1/2009 when the program is set to expire.

This morning I came across this article which is reporting that there is currently a bill in front of the House Ways & Means Committee in Washington D.C. which would extend the credit into 2010.

I’m not sure of the political feasibility of such a bill. especially since budget deficits are a growing concern amongst Americans (click this link to see the US national debt clock).

What do you think?  Do you think we should extend the program?  Or, should we let the free market takes its course?