1) If your family really really need a house, like your children is growing fast and need a nice environment to live and bigger space to play and run. Then, this should be your first priority to satisfy your children’s need. Go ahead and buy, the price may go down a little more in years ahead. But your children’s happy youth is PRICELESS.

2) If you are a couple without children, no pressing need for a bigger house, I suggest that you rent. As long as you are vigilant and ready to buy in the future. For example, if you rent till 2009, you may get a better pricing. Whoever tell you never buy a house, and keep renting forever because rent is always cheaper, these people are not responsible to you. So, think independently.

3) You also need to know that although inflation is going to be a big threat for the future, buying a house today doesn’t solve this problem immediately because the price could go down for 3 more years. The benefit of inflation hedging will not show before you own it for 8-10 years. So, be realistic.