It should be no surprise to most of us that there is a market correction going on right now in real estate. In Southern California our property values have nearly tripled in six years.  Our homes appreciated in value faster than the price of gas, and we all feel that pain as we fill up.  So it now appears that we have "given" back a little of that appreciation, kind of like when gas prices dip for a while. Ever notice that the dips in gas prices are usually for a short period of time, and then they go up again usually hitting a new record high?

  So what do we do and what do we advise our clients to do? Sell? Buy? Refi?

There is no "one size fits all" answer.  Each person has different motivations. Just like gas prices, you either pay the price or drive less; in most cases we don't sell our car.  Different motivations determine different outcomes!

•1)     Lately, it's "Should we sell & then rent until the market comes back?" So when it comes back and homes are appreciating again, you'll pay more for the home you just sold.  Sell to move up or down, not out! 

•2)     I'll wait until interest rates (I/R) go down before I buy. This is another unknown & I'm sure in the next Presidential election we will have a I/R change. Bottom line, if you don't own...you lose the tax deduction this year and you'll be buying on the upswing, instead of at the "everybody wins" market.

•3)     What if prices drop more?  Woulda, coulda, shoulda; don't let them be your best friends.  There will be no warning on 60 Minutes that the low in Real Estate will be a certain day. Just like those gas prices, if you need it and can make the payments, maybe you are ready to buy.

Bottom line, you do not likely sell your car when gas prices go up, maybe change to a more efficient model or drive less but talking to them should determine what is best for them; just talk them through it! 

(Talk them off the ledge is more like it! )