When to become a first time home buyer? Now.

Home prices ticked up 0.7% in November. The Federal Housing Finance Agency tracks this data and, like Case-Shiller, it runs on a two-month delay.

That is perhaps the biggest issue. The Realtor data shows 80% of Pending Home Sales close within 60 days meaning that the home price figures are always about a full sales cycle behind.

Over a year, the data can be fairly useful. The facts are that home prices are up and home supplies are down over the past 12 month.

There are three reasons to become a first time home buyer today:

1. First time home buyer tax credit
2. Home prices are low
3. Mortgage rates are low

The tax credit expires in 90 days. Home prices are moving higher. Mortgage rates are moving higher. The tax credit is almost irrelevant. The total cost of owning a home that costs just 0.5% more and has a rate of 0.5% higher far outweighs the credit.

In buying today, a first time owner gets the best of all three, low price, low rate, and a whopping $8,000 tax credit.