You have a better chance of losing money in california by buying a house now.
look at the site below. It shows predictions for prices in cali in 2010.
The real truth is that the prices dropping or going up are irrelevant in your case.
What you could buy is not adequate for your needs.
What you could rent would fit you very well.
I would rather rent being able to move anytime I wanted in a spacious comfortable house compared to living in a condo I owned but could barely turn around in.
There are times money is a big consideration, but for you, people first, things second.
If all of the people in your house feel cramped no one will feel comfortable. I would not be surprised if it caused more arguments and made people more on edge in your household.
I can definitely see it not working out for your most important aspect of all. Your job working out of your to cramped to move around in house. You would likely lose productivity if you lacked the room you need to work in.
I would rather rent than own in this situation even if it cost more to rent. You need the space and the condo just will not give it to you.
If you want to look at does renting or buying make more sense from a purely economic standpoint look below. It is a blog that shows how to plug in your numbers to see which is really the best option.
Amortization and realtor fees really hurt any profit you might make for at least the first 5 years of a 30 year mortgage. In the above blog I covered everything I could think of except for 2 things. 1 price change. That is a bet not a sure thing. Prices could go up or down. 2 income tax changes, I could only say check it out since I do not know how to figure that out for a mass audience.... more