Prudent for you to act now.
Prices are going higher.
Check out the blog below that lists how the California housing market will do
Many areas are experiencing a leveling of prices....whether or not this is going to change, no one knows. What we do know is that there are still some great opportunities out there for serious buyers.
What are the benefits of buying now?
1. great inventory of homes to choose from
2. lower prices
3. low interest rates
4. first time buyer incentive
5. motivated sellers
The reason(s) for waiting appear to be to see if prices are going to drop.
You could wait a few months and see if prices do come down or if you like the home, negioate a price you are happy with a month and can afford. If you think you will move in less than a few years then I would say continue to rent.