Many of your clients are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. However, as agents, it is your job to explain to your potential buyers that this is a great time to stray from the herd because they might be in for the home-buying opportunity of a lifetime. So, we decided to list 5 great reasons that your prospects should be buying a home this year.

1. Affordability is better than ever According to the National Association of Realtors' housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

2. You have a large inventory to choose from In many places, it is taking months to sell a home, creating loads of inventory -- from new homes to existing homes to foreclosures. There was a 12.9-month supply of inventory in December given that month's sales pace, according to NAR.
A large selection gives buyers more choices and drives down prices. Also, home sellers have gotten the picture and have started lowering asking prices.

3. Builders are offering big discounts Home builders are getting even more aggressive with their pricing. (DON’T FORGET – Go through your Realtor when dealing w/ Builders. You don’t pay the Realtor, the Builder does only if your Realtor is with you!) In fact, Eddie Fadel, author of the book "Don't Rent, Buy" recommends looking at completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not only on the home itself, but also on the home's appliances, he said. "[Builders] want to save their credit, save their brand, save their reputation and clear out inventory," he said. "They can go buy cheap land today with that cash." His advice: have you clients walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away.

4. Mortgage rates are historically low It is not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500 in high-cost markets.) Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.25%, according to Freddie Mac's weekly mortgage survey.

5. You can get a federal tax credit There's currently a federal credit of up to $7,500 for home buyers who haven't owned a home in at least three years. The credit needs to be paid back, although the repayment feature is removed in the economic stimulus plan if it is passed in the House of Representatives.

That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six months of owning a home.

The National Home Builders Association is pushing for more help for home buyers, including an even bigger tax credit -- the Senat,e in its version of the economic stimulus bill, is proposing a $15,000 credit. Both NAHB and the National Association of Realtors want the incentive to help all buyers, not only those who are becoming homeowners for the first time.