Buying a home in the next 12 months seems to be a highly speculative move especially in California even with lower home prices. It is amazing (although not surprising) that none of the potential options for a housing recovery include renting … The median home price in California was $264,000 in December of 2009 and in September of 2010 it was $265,000. Prices have moved sideways for the year and are likely to move lower in 2011. I would argue that a large reason for the movement was the homebuyer tax credit but also the numerous fence sitters that thought 2010 was the year to buy. Yet as the median price demonstrates, there is little reason to buy because you think you will be priced out. In fact, if you have the itch to buy right now I would say lock yourself into a 12 month lease to protect yourself from impulsive moves like the large herd that went to condo bidding wars. There is no rental lobby, but there are many reasons why renting in California for the next 12 months makes absolute economic sense.
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