Although there are encouraging signs in the housing market - including a pick-up of home sales in previously hard-hit markets, record affordability, and continuing low interest rates - prices have not yet hit bottom, according to a panel of housing and economic experts who spoke at a real estate summit hosted by the National Association Of Realtors® as part of its Midyear Legislative Meetings in Washington, D.C., the week of May 11, 2009.

To put a floor under the market, the federal government must continue to intervene, panelists said, and expanding the first-time home buyer tax credit is a good place to start. The credit should be expanded to all households, they said, including those with higher incomes, and increased significantly in value, perhaps to $15,000 to $16,000 instead of the current $8,000.

"Then it would start to move real estate," said Robert Sibcy, president of Sibcy Cline, REALTORS®, based in Ohio.

In a positive move, the U.S. Department of Housing and Urban Development is set to roll out guidelines permitting HUD-approved lenders, public housing finance agencies, and some nonprofit organizations to make bridge loans to home buyers. The loans would be collateralized by the $8,000 tax credit, giving buyers the upfront funds for a down payment.

The inability to use the credit for the down payment has been a major stumbling block for the tax credit. NAR has been calling for HUD to use its authority to allow the bridge loans.

During the summit, HUD Secretary Shaun Donovan announced that HUD has decided to allow bridge loans, sparking a loud cheer of appreciation from more than 1,000 Realtors® attending the session.

"We want FHA consumers to access the credit to use as a down payment," Donovan said. "I want to thank NAR for its partnership with FHA." More details on the guidelines will be released in a few days, he said.

Donovan said the credit is expected to stimulate 100,000 first-time home buyer purchases and 60,000 move-up purchases this year before it expires December 1.