It's an exciting time to purchase real estate in Southern California. Residential inventories are up, prices are down and interest rates are at an all-time low. While buyers as a majority have been "waiting" for the market to continue to decline, many educated purchasers realize that there is a fine balance between inventory, price and interest rates. The decision for "when" to buy is a very personal one. However, if you are waiting until you hear in the media that the market has shifted, you will have waited too long.
We are already seeing multiple offers on our most aggressively-priced bank-owned properties as soon as they hit the market. These are turnkey homes, not fixers! There is definitely a pool of buyers who have been waiting for the "right" time, and they are creating a new category of buyer frenzy in what has long been considered a slow market.
The timing of inventory, price and interest rates is now at an exceptionally good balance. Buyers who continue to play the waiting game on price point may end up paying higher interest rates. Savvy purchasers are taking advantage of the large selection of homes and the aggressive interest rates NOW. They realize that while prices may continue to decline another 10% or so throughout the year, in the big picture they are getting an excellent purchase. For investors, rentals are currently in high demand, so rental rates and occupancy timing are balanced in their favor, as well.
Therefore in my personal opinion, it will be an excellent time to buy a home anytime throughout 2008. If you want to get the best options in inventory and beat the buying frenzy that will occur when the media finally recognizes that the market has shifted and it's "time to buy" (and therefore avoid the rise in prices that multiple offers create), I recommend that you call your agent right away and beat the masses to the best deals.
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