Many varying factors affect the decision to buy a home or continue renting. How long do you intend to stay in the home? At what rate are property values increasing? Are rental rates increasing? How much do you have saved to support homeownership?
Check out this estimator tool provided by The New York Times and input your information to analyze your situation. http://www.nytimes.com/interactive/business/buy-rent-calculator.html
The increase in property values depends largely on the neighborhood where you want buy, however, property values generally increased by 1% between 2010 and 2011. Rental market rates have increased 5.4% in the past year. (These figures will help you in the above calculator.)