ESCAMBIA COUNTY - Real estate agents say now is the perfect time to buy or upgrade homes.

As Channel Three's Jake Peterson reports the government is extending a stimulus for home owners.

With the stroke of a pen President Obama kept the first time home buyer credit alive until May.

Real Estate Agent Dan Gullahorn says that credit jump started the Pensacola housing market.

"It has driven our market since the spring. We had a 30-40 percent lift from the tax credit."

More than 1.4 million Americans took advantage of the credit.

The national association of realators says 350-thousand of those buyers wouldn't have done so without the stimulus.

"Here's the way it works. Say you buy this home for 120-thousand dollars. The government will send you a check for 8-thousand dollars within a couple of months."

Those who make less than $125,000 and couples who make less than $225,000 are eligible to purchase a home under $800,000.

"I'm really nervous. I'm waiting to move in tomorrow."

Amanda Golad used the credit for the purchase of her new home.

"I would never have the money and it would take me awhile and with the $8,000 credit I just was told this was the time to buy with prices being so low."

Economist say the stimulus does come at a cost to the taxpayers, but housing experts say it's needed.

"Real estate is whats going to lead us out of this recession we are in most people believe its what got us into the recession so it only makes sense that it will get us out of the recession."

"This is their chance to actually buy a home and invest in something."

The new legislation is also helping existing homeowners.

Most people who have owned for at least five years are eligible for a $6,500 credit to buy another home.Government Extends Stimulus For First Time Home Owners