“We’re timing the market. We think there’s more room for correction. We’re waiting for it to bottom out.” Aren’t these the comments of stockbrokers, investors and the Chairman of the Federal Reserve? Nope. Mrs. Smith, a senior citizen who recently relocated with her husband from Minneapolis to Encinitas to be near family, told me this.

They opted to rent first before buying Encinitas homes for sale. As an Encinitas Realtor I instinctively asked “Why?” Her answer, “We’re timing the market. We think there’s more room for correction. We’re waiting for it to bottom out.” It was an interesting response from a senior citizen couple that planned on retiring here.

These phrases are commonplace amongst today’s buyers. How did Mrs. Smith from Minneapolis become so darn shrewd? Simple, Mrs. Smith had access to four years of data that proved the market has been in a general decline since late 2005.

Certain levels of Encinitas real estate, like the most affordable Encinitas condos for sale, had already rebounded, but most other levels, especially the higher ones, had an undetermined bottom. Was Mrs. Smith making an easy decision? Or, was she accidentally ignoring some other obvious truths?

I first asked Mrs. Smith, “Do you need a mortgage, and if so, are rates important to you?” “Rates are at historic lows,” Mrs. Smith answered. “But for how long?” I asked. “And if rates do go up, would you rather be giving that extra money to the bank or saving it for your retirement?”

Second, they are seeking a single story home, an MLS category with fewer options. Are they sure there will be one serendipitously listed at the exact same time they plan to start their search? Does a prolonged search provide any inconveniences?

Finally, how will the Smiths know when the market has reached bottom at their price point? The reality is they won’t know it’s reached the bottom until it’s behind them. And, the buying activity will likely become more competitive like it already has been at the lower price points.

I told Mrs. Smith what I tell all of my buyers, “Southern California is on sale right now. I don’t know how long the sale will last. Think of how upset you will be if you miss it.

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