The first time home buyer’s $8,000 tax credit which was set to expire November 30 (and subsequently extended) created a one time — some would say artificial — stimulus to home prices in the third quarter of last year. This is evident from the reported 16% decline in National Association of Realtors’ index of pending sales — from 114.3 in October to 96 in November.

Though Congress subsequently extended the credit to the end of April and broadened it to include $6,500 for buyers who relocate, the effect of the November decline will be felt in the near term. Most pending sales close within six to eight weeks. And the postponed end of the one time credit will give buyers plenty of time to procrastinate in the first quarter of 2010.

If you intend to protest the appraisal value of your home this year it will be important to determine whether the comparable sales you use or those which the appraisal district uses come from first time home buyers (before November 30) or relocators (before April 30) because those values may have been inflated by the one time buyer’s credit. In that case you can use an Adjustment to discount the value of the comparable in support of your request for a reduction in your taxable value. You can bet the appraisal district won’t voluntarily adjust for those factors.