Home buyers have been frantically trying to close deals as April ends and two major tax credits that have benefitted new and repeat buyers cease Friday (April 30). Some top housing market experts and economic analysts have questioned just how much the credits have helped boost jumps in new and existing home sales in recent months, but others are very concerned about what will happen during May and June.

Initially just an incentive to new home buyers, tax credits were extended to repeat buyers over the last several months as an inducement to buy properties to help clean up the excess inventory and dwindling housing prices.

Recent reports showed strong showings for both existing home sales and new homes construction during March. Perhaps this is a sign that the market is building toward recovery and has truly hit bottom.

However, the pessimistic observer is quick to note that March and April numbers may be inflated as people already likely to buy homes anyway are simply doing so for less money.

This is the main point that proponents who did not want to see another extension of the credit have been pointing too. Some feel that the market, and perhaps the economy itself, is doing just what it would have without government intervention. Only, now there is a sizeable debt to pay off because of the breaks and infusions of cash.

Obviously, it is not wise to spend money to accomplish something that would happen on its own. The counter to this argument on a more cheery note is that if the credits have not really been a major factor, housing should continue to build momentum and help drive economic improvement in the second half of 2010.

The bigger challenge going forward is whether the jobs market will pick up steam quickly enough to avoid a recurring foreclosure mess. President O’bama and his Administration have recently been touting development of more localized (state-based) assistance programs to help people struggling to make their housing payments and at risk of default.

Critics of the previous housing market interventions believe the low borrowing costs and other incentives have only helped those who were going to be in the market to buy, and not necessarily those already overwhelmed with late payment penalties and loan defaults.

Most agree April should show to be a very strong month for housing. May is the question mark and be offer a better signal as to the medium-to-long term direction of the housing sector.