For new readers, Hilary is a friend of mine and a Real Estate Attorney and Realtor. She occasionally does guest posts here, and please feel free to contact us with any questions you may have for her.

If it’s possible that prices will continue to fall, why should I buy now?

Price is the major concern for sellers, cost should be the buyer’s concern. That means you have to take into account what your monthly payment will be, considering not only the price of the home, but also the interest rate associated with your mortgage, insurance costs, and tax benefits. Waiting for prices to “bottom out” while interest rates increase can wind up costing more over the life of the mortgage.

When will I begin to see appreciation if I buy now?

Appreciation varies depending on the market you are in. Nationally, there are indications that home prices will grow slightly – only .5% this year. However, if you are in a thriving market such as the Bay Area – especially Silicon Valley, predictions for appreciation over this year alone are around 2-4%!

Does buying really make better sense than renting?

Yes, you are building your own personal equity. When you pay rent, you grow someone else’s equity in their property. As a homeowner, you are putting your money back into your own pocket through the time you remain in that property, you are saving for yourself. There are also many personal non-financial reasons which influence people’s decision to buy.