We are frequently asked in this market if it smarter to rent than to buy. The answer varies for different individuals. Certainly if I could have sold my house 2 years ago, rented until now and buy back into the market it would look pretty good dollar-wise on paper. I would have avoided the big depreciation hit that I and most property owners have absorbed. But at this point in time I would definitely be looking to get out of my lease and back into a deeded property. The reasons are these:
Interest rates - Why rent when money is so cheap to borrow. 30 year mortgages are around 5% and at that payments are only $5.35 a month per one thousand borrowed.

Inventory of homes – We have more choices than this area has ever seen. The choices are not just more numerous either. In the last 10 years a variety of styles of architecture have invaded the valley. It is not all cedar siding and log cabins with shake roofs anymore. As of July 16, 2009 MLS for our region shows 1815 residences available. For Teton County, WY there are 640 homes.  There are plenty of lots too and contractors are bidding much lower than 2 years ago to build for you.
Price – prices are down significantly in all categories and might be nearing the bottom.
Control – you probably don’t like your landlord telling you to get rid of your pets, where to park, where you can put your grille and so on. When you own your home most of that goes away. You are the king or queen of your castle!

Savings – Your home still remains one of your best buys because you have a sort of forced savings account.

Taxes! – The interest on a home loan is a write off. You can gain up to $500,000 of value tax free (for couples or $250,000 for singles). There is also an $8,000 tax credit in place for first time homebuyers this year.

So it is a buyers market like this area has never seen before. Markets are always cyclical and this one will rebound. This is just a deeper cycle than we have had in many years.
If you ask me, this a great time to trade a lease for a deed.

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