Have you considered buying a home this year?  Did you toy with the idea of making that purchase while the tax credits were still in play?
If you missed out on the credits, did you get back on the sidelines?  You may want to reconsider jumping in.  After all, there are more homes coming on the market every day and you just may find the perfect house tomorrow.
Here are 7 reasons why buying today may be in your best interest and why home ownership is still important:
1.   Home owners build communities – In the recently released report The Homeownership Gap in Current Issues in Economics and Finance, the Federal Reserve Bank of NY states that, “Because owners have a financial interest in their property, they have incentives to take measures that will maintain or increase the value of that property. Some of these measures—such as fixing a leaky roof—are closely related to the house itself. Others, such as investing resources in the betterment of the neighborhood and the community, have broader beneficial effects on the local area, creating what economists call “positive externalities.”
2.  We still have a mortgage interest deduction in the U.S. – Many countries around the globe do not allow their citizens to take a tax deduction on any interest they may be paying on a home.  In the U. S. we have a huge opportunity and benefit by the MID policy.  It has increased buyers’ ability to leverage their purchase and to often pay less than renting.  As long as buyers are responsibly leveraging, this is a policy that supports homeownership, and buyers should consider their potential deduction when making a decision between buying and renting.
3.  Owning a home is an investment in family –  In the 2010 National Housing Survey, Fannie Mae asked renters why they would consider purchasing a home.  To renters, owning a home meant a safe place to live, a good place to raise children and would give them control of their own space.  We’ve owned the same home since our boys started Kindergarten 11 years ago.  I can’t imagine a better environment than the neighborhood where we live.  The boys have grown up surrounded by trusted friends and neighbors.
4.  It can be cheaper to own – In Denver, rental vacancy rates are low.  Therefore, the rental rates that landlords can command are increasing.  With today’s low rates, renting in many neighborhoods would be more expensive than buying.
5.  Rates are low ~ Unbelievably low – When we bought our first home in 1988 we assumed a 9 1/2 % mortgage.  We were absolutely thrilled with the rate and the 30 year term.  Today, you can find a 30 year loan in the 3 to 4% range, and even 15 year mortgages are in the 4’s.  You can buy much more house than you could three years ago when rates were 6.25%.  And prices have dropped dramatically since then too!  If this isn’t the time to buy, I’m not sure when is.  If you aren’t buying, you should consider refinancing (as long as you haven’t used up the equity with liens or lost value to the point where you can’t refinance.)
6.  Real Estate is still a great investment – If you’re in your home for the long term, your investment will likely out perform the stock market.  Mike Mandel, the former chief economist at Business Week and currently at The Wharton School said, “We’ve just had the biggest boom and bust in real history in recent history.  Nevertheless, real estate has still greatly outperformed the stock market over the past ten years.”
7.  Buying a home gives you roots – most people want a sense of community, permanence and belonging.  My brother is the proverbial rolling stone (I’ll probably never sell him a home,) but most of us want to be a part of something.  To contribute to our neighbors in a way that short-term housing solutions just can’t foster.  Bankrate.com recently surveyed homeowners, and despite the recent rash of foreclosures, short sales and the ongoing (but stabilizing) housing crisis those homeowners said they did not regret their decision to purchase their home.