To Buy, Or Not To Buy?

To buy, or not to buy, that is the question!
I have been getting this question quite often recently from many buyers. Most buyers appear to be "on the fence" about buying in today's economy. While I do agree that much thought, preparation and consideration has to be made about a buyer's particular income and economic situation when purchasing a home, I also encourage buyers who are able to purchase to take advantage of the incredible opportunities that exist for buyers in today's market.
Why should I buy now?
Yes, banks are restricting credit and financing has become increasingly more difficult to get, yet interest rates are extremely low and FHA loan limits are high. Couple that with a declined average home price and buyers are in perfect financial position to buy that home. Now, add to the mix the $8,000 tax credit (yes, it is basically FREE money but ends at the end of November) and the buying decision is an easy decision to make.
What about renting? If you qualify for a mortgage, and plan on living in a specific area for more than 4 years, it really does not make sense to rent when you can buy. As financing gets harder for some people, rentals will be in more demand, and those prices will actually increase. With rates so low, more principal is being paid rather than interest, which makes a great situation to buy.
Besides the financial advantages, owning a home is still the single most important investment people will make. In fact, the home purchase in my opinion will now become as important a decision and investment as it was to the baby boomer generation. The world we now live in (post-credit craze) will create a value in the few possessions we as a society have. The home will once again be at the forefront of those possessions. People will not be spending as carelessly as in previous years, and I believe homeowner's will be staying in their homes for a longer average than in the past 2 decades. At last, we once again have a traditional and healthy real estate market, where the majority of purchases will be made by homeowner's rather than speculators and amateur investors looking for the next "get rich quick scheme". This will eventually lead to sustained values that will begin to appreciate in a more consistent manner.