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.

2. You have a large inventory to choose from

A large selection gives buyers more choices and drives down prices…But if you put off a purchase until inventory shrinks substantially, you might not get as good a price, said Eddie Fadel, author of the book "Don't Rent, Buy!" And be forewarned: It's nearly impossible to time the exact bottom of the housing market and even if you do there's no guarantee you'll make a killing.

3. Builders are offering big discounts

Home builders are getting even more aggressive with their pricing. "[Builders] want to save their credit, save their brand, save their reputation and clear out inventory," he [Fadel] said.

4. Mortgage rates are historically low

It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments…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.

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 that passed in the House of Representatives.