Market Conditions

It used to be that sellers were the ones calling all the shots. But as the pace of the real estate market slows from what it was a few years ago, potential buyers now hold most of the cards - and should take full advantage. According to the Home Builders Association of Middle Tennessee, there are many reasons people should consider buying right now.

Buyers may be letting their emotions overrule common sense in today's market, especially if their current home has lost value. But now is the time to make your move. In many cases, the money you will save on the reduced cost of new property will offset the loss on the old one.

And if you are still on the fence, think how badly you could be kicking yourself in a year if interest rates rise, inventory declines and prices start rising. So go ahead and start your house hunt.

1. Homeownership offers security If this is your first time buying, consider that owning a home creates a sense of community and brings you closer to financial security.
2. Historically low interest rates Interest rates are hovering around 5 percent, when just six years ago they were closer to 9 percent. The lower rate can mean the difference of hundreds of dollars when it comes time to write the mortgage payment every month. And with every check you send off to a mortgage company instead of a landlord, you are building equity. And that is an investment in your future.
3. Stable prices Areas with sky-high housing prices have leveled off, making it possible to afford a home in an area that you couldn't just a few years ago. Another bonus is that sellers are much more likely to negotiate. Don't expect to get the moon, but be prepared to bargain.
4. Lots of inventory Houses are staying on the market longer, which translates into more choices. In the past, a buyer might have felt the pressure to make an offer quickly for fear of losing the property. With such a wide variety of new homes on the market, buyers can really pick and choose what will work best for their families.
5. Builder incentives Someone looking to buy a new home can expect to hear about great incentive packages from builders looking to sell. Shop around for discounted financing packages.
6. Buying builds wealth Home equity, the value of a home minus any mortgage debt, accounts for more than half of the total net wealth of the typical family. Owning a home is a must when it comes to accumulating personal wealth. And though the market may be cool now, over the long term, real estate has consistently appreciated in value, nationwide.
7. Tax benefits Owning a home provides a variety of tax benefits from the moment you make the purchase to the moment you sell. You can deduct all your interest payments on a maximum of $1 million, and you may be able to deduct some of the interest you pay on a home equity loan. Property taxes are also fully deductible, and if you operate a business out of your home, you may be able to deduct related expenses, as well.
8. Improve your credit Making monthly mortgage payments on time only improves your credit. And the better your score, the better interest rate you can get next time around.