Now that the federal and California state tax credits are gone, home sales have been decreasing.  Even though the tax credit incentives are gone, there are still reasons to buy a home now.
 
1.       Low Prices
Everyone knows that after the housing bubble burst, home prices plummeted.  These low prices won’t be here forever.  Even though the tax credits are gone, if you’re able to, it’s a good idea to take advantage of these low prices before they’re gone.  Or before mortgage rates increase.   
 
2.       Investment Purposes & Low Interest Rates
As previously stated, home sale prices are low, and everyone knows a good investment is made on the "buy side."  If you buy now and hang on to the home for a few years, it is very likely you’ll be able to make a decent return on your investment.  Not to mention that borrowing money right now is ridiculously cheap!  Five to ten years from now, we're all going to be talking about how great interest rates *used* to be and how we wish we had taken advantage of them.  Don't miss that boat!

 
3.       Other Tax Benefits
Even without the tax credits, there are a lot of tax benefits that come with owning a home.   You can deduct your annual property taxes and mortgage interest paid.  When you sell the home, you won’t be taxed on the capital gain unless it is over $250,000 (if you're single) and $500,000 (if you're married) and you make a certain income.  (Check out this blog for a breakdown of how this will work after the Medicare taxes go into effect.)
 
4.       Home Equity
By owning your own home, you can build home equity.  Home equity can give you a line of credit that you can use to make home improvements, send your kids to college, start a business, etc.
 
5.       Other Home buyer Assistance Programs
Just because the tax credits are gone, it doesn’t mean there is no longer help for home buyers.  Here in San Diego, there are several home buyer assistance programs which are listed on the San Diego County website.