In years past, buying a home was considered a solid financial step in the right direction. Even though interest rates are still attractive, prices are much higher than they were just a few years ago. So is this a good time to buy a house?

In Atlanta today, there is no simple answer. Some recent buyers, especially in the condominium marketplace, have seen their property values drop significantly in recent years. Appraisers warn of sham sales, causing a lack of confidence in values.

So how can you know if buying a house is the right step for you? Begin by asking yourself a few questions:

• Do you have steady income and the money for a down payment?

You may have to give up some things in order to own a home. In the 1940s, home buyers typically spent 14 percent to 20 percent of their income on housing. Now it's not unusual to see buyers spending 40 percent to 50 percent.

Part of that increase can be linked to a desire to buy homes with more amenities, such as a second bathroom and central air conditioning, but part is just much higher home prices in relation to other expenses.

Add transportation, food, clothing and other essentials to the family budget, and that house payment may not leave much at the end of the month. An unstable job situation or even a brief hospital stay could spell economic disaster for some.

• Do you recognize the responsibilities?

In addition to the monthly financial commitment, someone has to maintain the house physically: mow the lawn, clean the gutters, unclog the toilet -- in other words, tend to all the details we call the "joys of homeownership." Yes, you can hire people to get all these things done, but that will stretch the budget further. Many of these tasks may have been handled by your landlord in the past. But once you buy, the job is yours.

• Do you plan to stay in the house several years?

With slow appreciation now in housing prices, it may be several years before you can sell your house and hope to break even. Remember that a house has costly transaction fees, meaning there are major expenses when you buy or sell.

Unless you plan to stay in a house for at least several years, it may make better sense to rent.

If you have honestly answered "yes" to the above questions, you can start considering the benefits of buying now. They include:

• Historically, owning a home has been a primary means of accumulating wealth.

Real estate is a slow, steady performer, rarely giving a dramatic return, but it increases in value consistently over the years. Investing in a house is typically rewarding because you can buy a relatively expensive house with a small down payment (perhaps 5 percent or less) and borrow the rest at rates that are low now. And you get to live in the house in the meantime.

•  Our tax system rewards home buyers.

All the interest you pay on your home mortgage is probably tax deductible. Depending on your tax situation, this feature might lower your effective borrowing cost to about 3 percent.

And when you sell your home, qualifying couples can keep up to half a million dollars in profit tax-free. The tax benefits linked to owning residential real estate are nothing short of remarkable.

• Interest rates are lower now than they have been in about 30 years.

Now is an excellent time to lock in a long-term loan at a low fixed rate. You will be rewarded with a low monthly payment even if rates go up.

• The supply of homes for sale is good now. Sellers in metro Atlanta are finding they must price their homes competitively or buyers will go elsewhere. This marketplace rewards sellers who price their houses right and are willing to help a buyer with the costs of the sale. When the market firms up don't expect sellers to be so cooperative.

John Adams is a broker and investor. He hosts the "John Adams Radio Show," a call-in program dealing with homeownership and real estate, from 1 to 3 p.m. Saturdays on NewsRadio 640 (WGST). For more real estate information, visit www.money99.com.