Buy Now or Wait ‘Till $8000 Tax Credit Expires?

With the deadline looming for the $8000 first-time homebuyer tax credit, a Zillow user named orange hammer asks in Zillow Advice:

Is it better to buy now or wait until the $8000 tax credit expires?

orange hammer goes on to say, “There is a lot of competition for houses in my price range in Denver because of the 8000 dollar tax credit. My price range is under 150k. Will there be less competition once the credit expires?”

Interesting question and surprising to see there is competition for homes in any price range.