The federal government's $8,000 tax credit program to help breathe life into the listless housing market appears to be working in Central Ohio, according to local real estate experts.

As part of the American Recovery and Reinvestment Act of 2009, commonly known as the economic stimulus package, first-time home buyers can get up to an $8,000 tax credit if they buy a house before the end of the year.

It's an incentive that many home buyers in the Columbus area are taking advantage of, and, as a result, more homes are selling.

"That's what's keeping the market going right now," said Gary Parsons, president of the Columbus Board of Realtors.

He noted that home sales in Central Ohio have increased in each of the past four months due at least in some part to the federal tax credit.

"The spring has been busy in Central Ohio, and with only 160 days left to take advantage of the tax credit, we expect the summer to be even busier," Parsons said. "Lower-priced homes and foreclosed properties continue to be active in our market, attracting many first-time buyers with unbeatable deals."

Most of the home buyers using the tax credit are buying homes in the price range of $250,000 or lower, he said.

"The trend is to be that lower price range. Many are selling as soon as they're on the market and have multiple offers," Parsons said.

The tax credit is doing well for sales of both single-family homes and condominiums, he said.

Many home buyers in Central Ohio are using the tax credit even though, unlike 13 other states, they have to wait until next year to see the $8,000 tax credit.

Those other states have created funds to give the money to the home buyers up front so they can use it for down payments.

Texas last week started a short-term loan program that allows people to get an interest-free loan that they have to pay back when they get the federal tax credit next year.

States usually have a limited fund from which to draw the loans, though.

"Many states offer what I call 'bridge loans.' One of the major factors when buying a home is having the cash for a down payment," said Parsons.

The federal government itself is considering changes to the program that would allow the $8,000 to be used as a down payment.

Meanwhile, Parsons said he hopes the federal government decides to extend the program beyond Dec. 31 into next year or increase the amount, perhaps to $15,000, which might help stimulate the sales of more expensive homes.

"The next step is to get it extended. We're certainly hoping it does, and not just for first-time buyers, but any home buyer," Parsons said.

More needs to be done, too, to get homes priced more than $250,000 moving off the market, he said.

"With the upper level market there's nothing to stimulate that market. They're just sitting and waiting," said Parsons. "If they opened it up to all buyers, or extended it to $15,000, that would stimulate the upper market."

He said that once the economy gets back on its feet the tax credit program can be rolled back.

"What gets us through these economic times is housing," said Parsons.

There were 14,849 homes for sale in Central Ohio in May, down 17.1 percent from a year ago. New listings were also down 24.6 percent in May compared to a year earlier.

For the tax credit program, the Internal Revenue Service defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

The tax credit, which is equal to 10 percent of the home's purchase price up to a maximum of $8,000, does not have to be repaid.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.