While the housing market had a long term upswing, bringing home owners financial benefits, the last two years have seen a housing slump in many parts of the country. While real estate brokers still advertise this as a great time to buy, take the time to consider the overall state of the housing market and your own needs before making this decision. Many major press outlets have recently covered this housing slump and its impact on both the larger financial picture and individual financial outlook. The housing slump is hitting hardest on the East and West coasts and Florida; however, look carefully at your local market when making a home ownership decision.

In some parts of the country, homeowners have found that their investment has lost value over the last two years, and that their monthly costs have been higher than those of renters in comparable properties. Property taxes and additional fees, as well as depreciating home values can make home ownership a costly proposition in today's housing market.

So, when should you buy? If you live in an area largely unaffected by the housing slump, buying may still be a reasonable financial proposition. Buyers who expect to stay in their homes long term may still do well to purchase a home. In a lower cost of living area, it may take five to six years for home ownership to be worthwhile, but it could be much longer in a higher cost of living region. Buyers looking for a home may still be well served by purchasing their home, but those looking for a sure fire investment will likely find that in today's housing market, real estate is most distinctly not a winning investment strategy.

Renting does offer some advantages, especially in terms of maintenance and unexpected expenses. Renters are spared property taxes, need only carry affordable renter's insurance, and can move easily from house to house or place to place if desired. If you live in an area particularly affected by the current and expected housing slump, renting may reduce your monthly expenses and save you a costly financial loss when you are ready to move from your home.

Finally, homeowners are left to wonder what happens if they need to sell for some reason. Unfortunately, many homeowners will find their home sitting on the market for a longer than expected time, and may have to lower the price below what they're comfortable with or expected. Some homeowners resort to renting the property out in lieu of selling, hoping for an improvement in the market in coming years.

Home ownership remains a part of the American dream, but in today's economy, in some parts of the country, it can be a costly dream. If you are moving toward home ownership, consider carefully the market in your area and the financial realities of renting versus owning your home to make the best choice for your personal financial future.