So is it time to buy? Prices of houses are well off the highs of a few years ago. Many of the traditional homeowners (non flippers) are now just getting into the ugly side of this economic crisis. Layoffs and late/non payments are piling up while job offers and income is limited. Mortgage rates are also sitting on pretty low rates, with 30 year fixed floating around the 5% mark. Don’t forget the first time home buyers tax credit, which allows those who purchase a home between January 1st and December 31st of this year to receive $8000 tax credit. This money does not have to be paid back, unlike the previous $7,500 credit given last year.

So, we have a huge drop in housing prices, historically low mortgage rates, and tax credits/advantages to buying hanging out there right now. Those 3 signs all indicate a great opportunity to buy that home. Of course, You still need to do all the other work around getting a home – making sure you can afford the mortgage and interest, have job security, emergency savings,  and a credit rating that will actually let banks lend to you.

If you’ve been sitting on the sidelines waiting for the moment to strike, I believe the time is now. Do your due diligence beforehand, but mortgage rates and home prices won’t last forever. We are already outside the scope of a normal recession period. I’m not saying we’ll recover next week, but you don’t want to be mumbling “I shoulda” this time next year.