Obviously with the bad economy and foreclosures rates are at an all-time high, it’s an awful time to sell a house.

But what about buying?

The current economic situation may scare some buyers away but if certain factors are in your favor, it’s an absolute fantastic time to buy a home.

Here are five things you need to have if you wish to buy a house:
The ability to secure a loan
Cash for a hefty down payment
No overriding mortgage
A steady and secure job
The expectation that you’ll own the property for at least three years

If you lack just one of the aforementioned provisions you’ll probably want to sit this one out and wait for your fortunes, and the market, to change. However, if you meet all five conditions you’re ready to buy.

There are several reasons why now is a great time to buy a house. Chief among them is price. Houses are cheaper than ever.

According to National Association of Realtors, homes were more affordable in December of 2008 than at any time since 1970, the year the association began keeping records.

Experts predict that housing prices will stabilize by the end of this year. Even so, from zenith to nadir most of the nation’s metropolitan areas will see double digit declines in housing prices and some areas will see prices drop as much as 30%.

Another reason it’s a terrific time to buy a house, there’s a huge inventory to choose from.

As of December 2008, there was a 12.9-month supply of homes. With so many homes available for purchase, sellers are willing to drastically slash prices.

Low mortgage rates also make it an advantageous time to purchase a home. The first week of February saw the popular 30-year fixed-rate mortgage averaging just 5.25%.

Additionally, buying a home before November 30th, 2009 gives you an $8000 tax credit. The credit used to be only $7,500 but thanks to the economic stimulus plan that number was raised by $500 dollars. If the house is kept for three years, the money doesn’t need to be paid back.

When buying in today’s market, don’t be afraid to look at new houses. Many builders, desperate to unload their inventory, are selling their brand new homes at discounted prices.

Also remember that as a buyer you have all the leverage. The seller needs you a lot more than you need them. So ask for everything you want like closing costs, reductions, and improvements. You may not get it all but chances are the seller is willing do what they can to make a sale.

If you’re able to buy a home in this market you should probably do so as soon as possible. Waiting for even better buying conditions is not advisable, especially with good news on the horizon for sellers.

Besides, you should buy a home based on improving the quality of your life, not on market speculation.