Should I Buy? Or Continue to Rent in Rancho Cucamonga, CA?

This is a question that a lot of first time buyers and people who are just staring to get back on their feet, are contemplating right now. When is the time right to buy? If you listen to the news they will tell you the market has not hit bottom yet, which I believe is to be true. There is no crystal ball or magic that can predict what the market is going to do today let alone in the next few months. All we can do is give you the facts about what the housing market is doing currently. Now, may be the right time for some people to buy. For others it might be in their best interest to wait. But before you make that descsion consider ALL the facts: First, mortgage rates are at all-time historic lows. By historic, I mean, they have never been this low EVER in the history of mortgages. Some buyers I have talked with told me it was like borrowing free money the rates were so low. Well maybe not quite free; but lower than ever recorded. The difference in the interest rate can increase your buying power in terms of price range you are looking in or substantially lower your existing payment on a home you have been saving to buy. Consider in Rancho Cucamonga, CA the average home price hovers around $350,000. One percentage point in interest affects that payment by a little over a $130.00 a month. Second, home prices are at 2003 price levels in much of the area in Rancho Cucamonga and surrounding cities. meaning the average person is earning more than they did in 2003 but paying 2003 prices for a home. This makes the amercian dream of owning a home more affordable to more people. (The abnormally high unemployment rate obviously does not factor into this theory.) Third, the market is currently in a buyers market. By that I mean a stable market (one which does not favor the seller or the buyer) is a six month supply of inventory. Less than that favors the seller. More than that favors the buyer. Currently we are in a buyers market. Fourth, owning a home gives you numerous tax benefits. A lot of first time buyers are unaware that the interest they pay on a mortgage is tax deductible. So, you are saving even more money when you go to file your taxes each year. Though you should consult your tax accountant for the full understanding of the tax benefit to owning a home. Lastly, you may be able to pay a monthly mortgage payment that is relatively equivalent to current rental rates in Rancho Cucamonga and the Inland Empire. Most of the homeowners in the past year or so, that I have helped by a home, that were renting, are paying close to what they were paying in rent, for their mortgage...including property taxes! So, is it a good time to buy a home? For some, the answer is going to be an obvious yes. For others it might not be. Each one is different; but one thing that is for certain the market has never seen this type of inventory coupled with interest rates this low increasing the buying power of the average American family.