Yes, yes. There are many different opinions out there and as many news articles to "back them up". But there are forces at work that many do not understand. For instance, were you aware that many banks are holding back their REO inventories to put a stop to the downward pressures? There are two primary reasons they're doing this.

First, in markets where REOs are the majority of the inventory, they can manipulate the bottom of the market by reducing supply. People think that foreclosures = great deal, and in many cases they do, however; is that sentiment going to change? Banks are tired of taking losses and if they can control the price they get by controlling the market, they will. Look at any well known REO agent's inventory, and you'll see a sharp decrease from only a few months ago. Banks are choking off the supply and demanding a certain price for the properties and this is frustrating buyers. Fine, buyers will go buy the other properties in that market, but when those are gone, they'll have no choice but to buy at the price the bank demands.

Secondly, there is a lot of incentive for a bank to hold on to "toxic" or 0 based assets right now. The government's plan to backup private investments and to purchase these assets off of the bank's books at a value that is more than likely going to be higher that what they would get by selling it on the open market encourages banks to hold on to the assets for the big pay-day. I don't know how their going to value these assets, but based on how the banks are behaving, it looks as though they think it's a good bet to hold back, on both fronts. So much for, "banks don't want to own property". Well, they don't, but these are desperate times that call for desperate measures.

What does all this mean to you and I? Well, for one, it means that you can't predict what the industry is going to do, and you certainly can't predict the future? Will prices continue to go down or stabilize? Will the interest rates continue to be this good? Does anyone really know?

Any investor worth their salt will tell you trying to time the market is a fool's bet. Ask any Realtor and what they will tell you is that if the time to purchase a home makes sense for you right now, it's as good a time as any to make a move.

Some say that the market will continue to drop another 20% before we reach bottom. I say, you wanna bet?

Plenty more time before you even need to look for the bottom.

http://www.nytimes.com/2009/04/01/business/economy/01econ.html?hp

All the foreclosures will drag prices down more.

Or just listen to any Realtor - they will tell you it is the perfect time to buy.

Wait 6 months, save another 20%

This sounded crazy when I first heard it, yet now, almost no one can argue with it except in a few markets.

My VA Beach neighborhood is toasted. Thankfully Im not moving for awhile. Id guess it will take 10 years minimum to get back where it was.

I have read many of the answers - and you still have to know when is best for YOU and your situation. Prices may go lower, companies may still lay off more. That's definitely a factor in determiing supply and demand. However another factor to keep in mind now - if you must sell first to buy a larger home or in different area of the country - you will probably be able to buy more home for the money than you could a year or so ago. So yes you may get less for yours but be able to make a good "buy up" investment. I would still ask a seasoned real estate agent to run supply and demand in both your selling and your buying markets to see where you sit, then make the best decision. Blessings on your decision!

Many people today are making the decision to buy based less on the economy and housing delema and more on personal need and their financial security because they realize home prices in some location ARE at the bottom.

It's a matter of finding the right property being offered at the right price.

What is the average days on market and current inventory level in Indio?

At the current inventory level, how many months of inventory are available?

Hi Luis:

I will tell you this. I am currently showing property in Indio and we are looking at homes that have been on the market for only a few days or even 1 or 2 days, and by the time we view them and make an offer, they are either contingent, pending or have multiple offers. If you see something you like, you should consider going forward. Interest rates are low and prices are lower than ever. How much difference will it make in your mortgage payment if you wait and then lose a home you really liked.

Carolyn Voet, ePRO
Committed to Excellence
Windermere Real Estate
Indian Wells
760/774-6510 (cell) http://www.carolynvoet.mywindermere.com
MailTo:cvoet@sonic.net

Luis:

The market turnaround this time will have a very wide and flat bottomed U shape rather than a V shape according to ecomomists. So you should have plenty of time to make a decision. We can also be sure the Fed will do all in it's power to keep interest rates at the historic low levels, and they are trying to actually push rates lower.

When the average days on market and the inventory levels in your area start decreasing significantly, be prepared to move, that will be your signal.

However, there are still opportunities to get properties at tremendous discounts. It isnt happening too often, but if you are really dilligent, you may find one. The problem is that so many people have little or negative equity, they can't sell at the market value.

Be cautious, and good luck.

Hi Luis!

Robert and Matthew have both provided solid answers......At the end of the day, your personal economy and desired home needs will determine when and if the time is right for you to make a move.....

Good Luck!

Rudy
Social Media Guru at Trulia

Well said, Matt. It is interesting to me to see how fear of loss is a strong motivator in how people respond to real estate. In a booming market, people feel like they will miss out if they don't get in. They're not afraid of paying too much during this time, and in many cases, they do end up paying too much for a home. In the down market, you find folks sitting on the sidelines waiting for a signal that the bottom has been reached. They're afraid they may pay too much and try to time the market. Even though the combination of selection, price, and interest rates have not been this favorable in a long time, they wait.

What are you waiting for? If you are in the market to purchase a home, meaning you are able, ready, and willing, then now is the time. Or you can wait with the thousands of other buyers sitting on the sidelines waiting for the bottom. But as Matt said, no one will know when that is until months later, and then it will be too late. The flood gates will open, and good luck then. The competition will be fierce.

Bottom line, don't try to time the market. If it makes sense for you now, then now is when to make a move.

By the way, if you'd like to see a list of the hottest new listings or access free reports on the most relevant real estate information in Southern California, such as what you should know before you buy a home, I strongly suggest you check out http://SoCalHomesNow.com

Good Luck!