By a vote of 72-13 the U.S. Senate passed the housing bill earlier passed by the House of Representatives.  There are a number of provisions in the bill, all of which will help the real estate market in those areas where conditions are the worst.

But even in New Jersey, where the market's decline has not approached the abysmal levels of California, et al., there is a provision that should certainly stimulate activity.  First-time home buyers who close(d) on a home between April 9, 2008 and July 1, 2009, will be eligible for a tax credit of up to $7500.  That's a tax credit, not a deduction.

The difference is that if you have a total tax liability (what you owe the IRS) of, say, $10,000, and you have bought a home in the date range of the bill, your tax liability (what you pay the IRS) can be as little as $2500.  That's huge.

This bill - to be signed by the President next week - will pull buyers off the sidelines, and will strengthen the real estate market significantly.  Other provisions will contribute to this strengthening.  Expect the market to change.