It's a Buyer's Market, so get out there and look, and here are some incentives to get you to start thinking about buying!  Think of the tax benefits you will reap by buying a home this year. 

One of the biggest tax benefits - MORTGAGE INTEREST - This is tax deductible up to a million dollars.  This applies to all the homes you own under certain circumstances. (Check with your tax advisor)

As a homeowner, you will be able to deduct the local property taxes for all the properties you own as well. You no longer have to itemize to be able to claim this one, but again check with that tax advisor.

Those pesky little points that you sometimes have to pay when getting a mortgage are sometimes tax deductible.

The new tax deductions and sometimes temporary one include $8000 for first time buyers - This one you do not have to pay back as long as you keep your home for 3 years unlike the original $7500 tax credit proposed.

The mortgage insurance premium you may have to pay because you put less then 20% on your home, well its tax deductible now if it was issued between 2006 and 2010.  Check the income limits on this one with your tax advisor.

Remember always go to a tax professional if you have any questions on the above or any other tax matters.  Things change with taxes as often as the weather in Texas.