Here’s a thought:
Maybe first-time homebuyers can rev up the housing market.

After all, the housing bill that President George W. Bush signed July 30 gives them a nice $7,500 refundable tax credit against the purchase of their home. They have to use the credit right away, because this provision expires next July 1.

They’re an important group, by the way. The Florida Association of Realtors said than in 2007, first-time homebuyers accounted for 38 percent of all sales. Young people ages 25 to 34, presumably the group that includes the most first-time homebuyers, snapped up almost half the homes sold in Florida last year.

What does a young person need? A job, some savings and now, we’re going to hand out a little cash to help with the purchase.

Ara Hovnanian, the CEO of builder Hovnanian Enterprises, said on CNBC this morning that a much smaller tax break for first-time homebuyers in the 1970s “really worked.”

For more on the housing bill, look in the paper on Sunday. In my column, I’ll discuss the help it offers struggling homeowners to refinance their loans.