If you are relocating to Southern California (or many other parts of the country) you are likely dealing with a buyer's market. If you are a bit gun-shy about buying in such a market, here are some good reasons to do so:

1. Inventory - there are LOTS of choices of style, price, location, age, condition, etc. If you can't find what you want perhaps it doesn't exist (maybe an exaggeration). But don't let the numebr of homes overwhelm you and keep you from making a decision. Some poeple look and look and look, thinking they will find the perfect house, and never get anything, or lose the one they really wanted.

2. Incentives - this is especially true for new homes and condos. Builders are offering all sorts of incentives to purchase from their inventory, including upgrades, creativity around closing costs, etc. Don't expect a huge price reduction since this create appraisal (and thus financing) issues as compared to other homes that the builder sold in the recent past)

3. Competition - sellers are competing for buyers, not the other way around.

4. Mortgage  rate - pretty favorable right now, close to what we saw at the beginning of the year. Will they go lower...maybe. But more likely they will go up. And if you are a First Time Buyer there are some great programs available with great rates.

5. Seller Negotiation - Because of the market sellers may be willing to negotiate, depending on the situation. Don't count on it, but we do see closing costs or a portion of them being covered, and other concessions being made. Many sellers are motivated (although depending on THEIR situation this does not guarantee they can or will be very flexible).

6. Prices - it depends on where you are looking, but in some areas prices are very stable and are not moving. While some communities have seen small drops one cannot (and probably should not) assume prices are going to drop. And if they do but rates go up you possibly wash away any gain you get by the price drop. Consider the tax advantages if you are not in a position to profit fr0m this as a renter and what you may be losing out on.

Don't believe everything you read in the media headlines. Get the information you need from a knowledgeable REALTOR who can tell you what is going on in their market, instead of depending on the array of statistics that the media quotes. The information is generally taken out of context and they like to report only the bad news and not the good. Be wary...and question what you read.

Clearly buying right now is NOT right for everyone, but avoiding the market because of what you read may result in your not getting a good deal on the house you really want and can afford. And a knowledgeable REALTOR in your area can help you avoid overpaying too!

One last suggestion - take a look at this article I posted previously on Bubble Sitting. Waiting to buy may NOT be the best financial strategy for you.