Home resales are growing at an impressive rate, having increased by 9.4% in September. Many foreclosed homes for sale are flooding the market. The Associated Press reports that:

"First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sale price, up to $8,000, if the sale is completed by the end of November."

Is this the right time for you to buy?

Some forecasters believe a drastic decline in home prices is possible in the near future, due to economic forces such as the high jobless rate and the continuing trend in foreclosures. Thus, it might make sense for those seeking investment properties to wait to buy until the prices hit rock-bottom. But, if first time homebuyers wait, they will miss out on the tax credit.

Currently, the tax credit for first time home buyers ends on November 30. Congress is considering extending the tax credit under pressures from realtors and home builders. No proposal has been finalized. The bottom line is, if you have prepared financially for a home purchase, are a first time homebuyer, have looked at numerous homes for sale, and found one to your liking, this is a great time to make that first time home buy. The prices may come down, but the tax credit for first time home buyers may be kaput.