First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes, or a cash payment, if they don't pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6%. Freddie Mac documented a decline in mortgage rates during the week ended March 4, with 30-year fixed home loans slipping to 4.97% from 5.05% and 15-year interest averaging 4.33%.

Rising prices. About 30% of markets are already experiencing price increases. Prices are falling in 12% of markets, says Fiserv (but that only helps if you want to live there).

  FREE DETAILED HOME INFORMATION!

Find Out Detailed Home Information on Any Home Listed For Sale in the Dayton Area using a new system that searches Multiple Listing Services (MLS) records daily and e-mails the information directly to you including addresses, prices and photos ...it's simple, automated, and dependable.

            Look For Homes Without The Hassles at www.daytonpropertyfinder.com

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.