We just finished a board retreat trying to plan around our changing real estate market in Southern California. In addition to trying to guide our Association, we are all Realtors and investors ourselves trying to get a handle on where the business is going, how to advise our clients and time our own plans. One member had an interesting analogy which I'll pass along to you.

A guy goes in to a clothing store one day - needs a shirt (well, we know that's the only time guys shop - when they really need something, right?) He see's this great looking shirt that he just knows would make him irresistible and successful. There's a ton of them on the rack in every color imaginable and there's about 30 in his size. Only problem is the shirt costs $85, which is a little beyond his budget.

He happens to stop by the same store a couple weeks later and that whole rack of shirts is now on sale for $35 WOW. He's excited  but he's thinking - 'if they dropped the price that much it's probably because they're not selling too well and they'll drop the price even more. I'll wait and see.'

A couple weeks later he stops back but the shirts are still $35. There's not as many of them - only about 17 or 18 left in his size and some of the colors are gone but still a decent selection. He decides to wait a little longer to get the best deal he can.

Sure enough, when he stops back a couple weeks later the price has been reduced to $29. Problem is, there's only 3 left in his size, two in puce and a fuchsia paisley number. He still needs a shirt so he grabs a plain white one that's two sizes too big so at least he'll have something to wear. It don't look as good and the color's not right but at least he got a bargain.

The moral of this story is - you can wait forever trying to time the market and you may or may not get lucky enough to hit the absolute low point to buy. And even if you do, your selection may be limited, the model you want may be gone, your size is out.

We all know the housing market will turn around in the next 6 - 18 months. Prices have already fallen off significantly and probably won't drop much more in most areas. Interest rates are near historic lows - they might drop a little more but not much. Inventory is at an all time high - there will be more foreclosures hitting the streets for awhile keeping selection good but that will correct itself as well.

If you wait too long, you're going to be out of luck and kicking yourself again. In real estate it's about location, location, location but timing has a lot to do with it too. It's a great time for first time buyers, move-up buyers and investors. Don't miss your opportunity by waiting too long.