Jackie "O." Orzechowski Prudential California Realty 714/ 402-9155

Q. Is it better to rent or buy?

A.People often think that renting is less expensive, but that is not always the case. For example, in downtown Fullerton, rent for a two-bedroom apartment is $1,900 a month. You can get a house in today's market for about the same amount. This doesn't even count the potential tax benefits that come with owning a home. It also doesn't factor in that you could enjoy the same mortgage payment for the next 30 years – and end up owning the property at the end of that time – as opposed to a renter, who may watch his or her payments increase every year, while not building any equity.

I've encountered situations where a client lived in a rental property for 20 years and thought that the landlord was a good friend. But then the landlord ran into financial problems, decided to sell the property and only gave the renter 30 days to find a new place to live. That's just one of the uncertainties of renting.

Q. Is now a good time to buy a home?

A.Today's low rates and home prices have combined to create the "perfect storm" – a great opportunity right now for prospective home buyers. Often people try to wait and time their home purchase for the absolute rock bottom of the housing market. But there's no way to know when we've reached the bottom; nobody rings a bell. We're in a window right now, and this may be the perfect year to buy a home. In fact, here in Orange County, competition among buyers is already picking up. I'm seeing multiple offers made, especially on homes valued from $250,000 to $300,000.

Q. What do you predict for the future of the housing market?

A.Again, I'm regularly seeing 8 to 10 offers on properties in a certain price range, with some buyers needing to bid above the asking price. So that indicates to me that we're really close to the bottom and things are picking up. Because of job losses, I don't think we'll rebound immediately, but I do think we'll reach a plateau this year.

California real estate has been very predictable for the past 100 years. It goes up and down within 7- to 12-year cycles. We're in a low cycle right now, and while nobody can predict where the absolute bottom of the market is, people who wait too long trying to find that bottom could miss out.

Historically, California real estate has appreciated over the long term and been a good investment.* Prospective buyers who want to take advantage of the opportunities available should work with a reliable lender, get pre-approved and find a real estate agent who understands all the complexities of buying a home in today's market.

* Past performance is not a guarantee of future results.