Of course, there aren't many people who believe that the government has the best solution to our problems, even if the problem is as significant as our current housing situation. No, the government should never be the first choice, but at this point we may need all the help we can get.

However, I really don't believe that the recent Housing Stimulus Bill is going to be the silver bullet that so many are hoping for. There are some aspects of the bill that certainly take steps in the right direction, but in the end, it will only be one of several factors that will eventually help turn this market around.

Now, I'd like to comment on some of the bill's highlights:

Tax credits for first time home buyers

This may help bring more buyers into the market, even though the definition of a first-time buyer is a bit loose.  These tax credits are more like interest free loans and they have to be paid back.

Conversion to 30 year fixed loans for financially strapped homeowners

Who could be against this, except for the lenders get to decide who is "financially strapped."

Better management and oversight of Fannie and Freddie

Sounds good, but this may not translate directly or immediately to practical help for homeowners.

I think you get the idea. It's an election year mixed bag that really doesn't go far enough to have the type of impact to turn this market around. This Housing Stimulus package may help some, but in the end, it will be the marketplace that decides.

Although it may take several more months to turn around, we are already seeing signs of a rebound in some locations.