Considering the Current Market situation, is it the right time for First Time Home Buyers to make their move and buy? (South Bay, Northern California)

There is enough negativity in the market. This does create doubts in the minds of most First Time Home Buyers. Down Payment figures these days are anything between 15 to 20 percent. PMI is back in vogue. It is a pretty steep entry for First Time Home Buyers. To top it the prevailing market condition is not too good and the immediate future predictions are not rosy either. Most First Time Home Buyers have a reasonable fear of Equity erosion. There is a scare of being upside down, with home values sliding lower than what they would owe on the property. Here is what needs to be understood to make an informed decision.

Firstly, Home ownership has an emotional value and pride of ownership, for each family member, spouse and kids. You can put no value to this sense of belonging and pride of ownership.

Secondly, Investment in Real Estate since long has a very simple strategy, "Buy and Hold". It is "Timing in the Market" (number of years), than trying to "Time" the market. May not be a good time for short time investors, flippers or those buying to hold for a short period.

Thirdly, Aim. What is your aim, why do you need to buy a home? The answer to this question will be one major factor in the decision making process.

Fourthly, what are your Needs / Wants / and Desires? This will help you set a search criteria and coupled with affordability will decide on the Amount of Home you buy.

Fifthly, holding time. How long would you want to own your home? This is a major factor and coupled with the aim will help arrive at a logical decision to buy or not to buy.

Sixthly, Market conditions, past, current and future and how would it affect the purchase.

Seventhly, the time to buy. There is a need to allocate a time, be a date or number of months to execute the purchase. This will qualify the aim; keep you focused and help re evaluate your strategies and your execution as you go along.

The way to go about is, put your thoughts to paper in a logical manner. Any fears and or lingering doubts commit them too, to paper. This will go a long way in helping you making an informed decision. Be aware of over analysis, "Analysis Paralysis Syndrome"Last but not the least; consider seeking professional counsel of a Realtor and a Lender help you understand the local market and walk you through the process.