It still surprises me when people, who should buy rather than rent hesitate because they think the big dip is going to happen again. I've got news for all the naysayers, California is having a "blue light special" and it's already begun. Yes it will last for 14 more months or so, but the point is it has started. I know from experience that 89% of buyers and investors never buy when prices are going down. They generally wait for prices to go up then they jump in and regret it later. As of 7/3/08 prices will drop 5-10% then go up 10-15%. If you don't buy in the next 12 months you will miss out not only on low prices, but also on low interest rates. That could cost you thousands of dollars in the end. Twelve months seems like forever to some of us. But in terms of investing in real estate, it's not. For example, think about this scenario. Someone decides that they are going to buy a home instead of renting. If they choose to use a buyer's agent and don't have someone they can trust, they will need to interview at least two agents. Let's say it takes two weeks to decide which agent they feel comfortable with. Next they will have to make an appointment to meet with the agent to start to search for their deal of a life time. Another week could have easily gone by. We are now up to three weeks and they still don't own a home. After they preview 10-15 homes they decide to make an offer. Again, another week was used up to preview the homes. One month has gone by and still no house. Most houses on the market in Southern California are either bank owned or being sold as a short sale. If it is a short sale, count on it taking 3-4 months from the time you summit the offer and the time it takes to close. The whole process can easily take 4 to 5 months. Now, bank owned properties do generally close faster but they too can take up to 3 months or so to close. The key is getting an answer from the bank.

      It is easy to see how time evaporates quickly when you are shopping in a "blue light special" real estate environment. If you would like to see all the short sales and bank owned properties in Southern California, go to my web site at www.soldbybarr.com I do have some internet specials of my own that you might find interesting.