The days of 10-30% annual appreciation still exist. Home buyers in the 1990's benefited tremendously from what seemed like ever appreciating home prices, now we are seeing growth along the same lines. Nowadays, you're looking at stable growth while guarding against the possibilities of falling prices, low interest rates and corporate layoffs that can dramatically affect your Malibu home values. The classic rule of buying the worst house in the best neighborhood still applies. If you buy with an eye towards improvement, you can customize the home to fit your needs. The saying, "make money buying a home, not selling one," should keep you focused on the long-term importance of the purchasing price.