If the idea of buying a new home for the holidays is appealing, you’re not alone in your thoughts.

According to an article in the Boston Globe by noted real estate expert Bob Bruss, the holidays are a great time to buy. Bruss says that “between now and New Year's Day, sellers who have their houses and condos listed for sale during this season are usually highly motivated to sell and are willing to make good deals because most buyers are tied up with holiday events.”

The robust housing market of the last year or so has slowed recently, and buyers now seem to have the upper hand when it comes to getting the home of their dreams when the mistletoe is hanging low.

David Lereah, chief economist for the National Association of REALTORS®, says markets across the country are getting into better balance between demand and supply.

“We are returning to a more balanced market between homebuyers and sellers, one that places buyers on a more even footing,” he says. “Housing activity has peaked, and we expect further cooling in the coming months. But we feel confident that housing is landing softly as (mortgage interest) rates continue to rise.”

Considering such factors as interest rates that continue to remain relatively low, creative financing options, builder incentives like zero down payment for first-time homebuyers, and a thriving market, it’s easy to see why buying a home now is a great idea.

Affordable housing in Texas
Another reason? Housing continues to remain affordable in Texas. According to recent statistics from the Real Estate Center at Texas A&M University, during the second quarter of 2005, a Texas family earning the state median income made 69% more than the required income to qualify for a conventional loan on a house that costs $136,700 – the median price of a home in Texas.

And, in every Texas metropolitan area surveyed, the affordability index was significantly greater than 1.0, which means that most Texas families could afford a home that cost more than the median-priced house in their community.

Extra incentives – and a solid real estate market
Another reason for buying a home this holiday season? If you’re building, homebuilders who want to move year-end inventory are offering extra incentives – like design allowances, upgrades, gourmet kitchens, and outdoor living areas – that make buying a new home hard to pass up.

Finally, experts in the field – REALTORS® – see the market as great this time of year. According to a survey of leading REALTORS® who hold the Council of Residential Specialists CRS designation, 92% rate their business prospects this year as “highly favorable.”

The same survey also asked REALTORS® about the relationship between inventory and home prices. Most respondents thought both would increase, with about 34% expecting larger inventories of homes for sale in the coming year, 29% predicting a smaller selection, and 36% anticipating the supply to be about the same as last year.

Great timing for move-up and first-time buyers
Also, for those families who are looking to make the move to a larger home, you’re not alone in your desires either. Most REALTORS® attribute the increasing number of move-up homebuyers to still-low interest rates and a sense that an investment in real estate provides more stability than an investment in the stock market. REALTORS® responding to the survey report that 42% of their clients this year are move-up buyers, and 27% are first-time buyers.

For consumers willing to do a little legwork this time of year, a home for the holidays can be a reality. As with any other time of year, get pre-approved for a mortgage first, before you start shopping around. Get your finances in order, get a copy of your credit report, and hold off on buying the family a boat for the holidays – at least until after you’ve already closed on your new home.

Ask friends, neighbors, and co-workers for recommendations on Texas REALTORS®. Interview several to be sure you’re working with someone you like, someone you trust, and someone who has your best interests at heart.

If you have a home to sell, talk to your Texas REALTOR® about conducting a comparative market analysis so that you price your home fairly and in line with your neighborhood. Pack up items you don’t use regularly and put them in storage to eliminate clutter before your Texas REALTOR® shows your house to potential buyers.

Happy holidays and happy house hunting.