the bottom line is most buyers are aware of the stimulus package for first time home buyers. Money is "cheap' now to borrow, in fact the lending rates have never been so low! First time home buyers are also temped with a generous tax credit of 8,000. But buyers must keep in mind that in order to benefit from this tax credit, their purchase must close by the end of November.
Most transactions average approx, 60 days to close. It is important to remember that you need to be under contract by the beginning of September or earlier to factor in a sefety net of time - in case YOUR home purchase needs more than 60 days. Inspection issues can add some time.
Properties involving the sellers bank (short sales) can take much longer to close, depending on the circumstances. So remember, it is not too soon to look for your first home.