Q. I saw a fantastic apartment for $2,100 a month and I see myself living there for at least three years, if not longer. It is also for sale and the asking price is $600,000. My income is $90,000 a year, and I expect it to increase to $100,000 by the end of this year. I can put $20,000 down. Considering the real estate market I can't assume the value will go up in the next two to three years. On the other hand it's a very unique apartment and I expect it will maintain its value. Given all of that would it be wiser to buy with an interest-only mortgage or rent?

A.We aren't sure where you're living, but first-time buyers almost everywhere should heave a big sigh of relief that the long run-up in prices is over for at least a few years.

Until recently the National Association of Realtors expected the median sales price for existing homes would rise about 1% this year. But now the association says it will fall 0.7%.

If that turns out to be true, it will be the first time home values post a year-over-year decline since the Realtors began keeping those stats in 1968.

But are the Realtors still being too conservative? Economist Edward Leamer, the director of the University of California, Los Angeles' Anderson Forecast thinks so.

He predicts the price of existing homes will decline between 2% and 3% this year, and expects that trend to continue for two to three more years.

That means you're right. There's no reason to expect the condo you're considering will only get more expensive if you don't buy now. And with a huge number of unsold units on the market in most cities, the days of wild bidding wars are only a memory, too.

Indeed, if you bought this unit for $600,000 with only $20,000 down and an interest-only loan, you'd have very little equity in your home. If its value fell a mere 3% or 4% you'd wind up with no equity. You would owe more than the condo was worth.

That's not a big deal if you live there long enough for the market to recover and you begin repaying the principal. But it's a very big deal if you want to move and sell the place.

So why not rent? See if it's really your dream condo. See what happens with prices. And if it's as great as you think, and you decide you really want to live there for the foreseeable future, make an offer.

In most cases, buying a home is a good way to build wealth. But we think caution should be used in this situation before jumping in.