Believe it or not, homes values seem to be rebounding a little driven by strong buyer demand and the fact that it is quite common for well priced homes to receive multiple offers. There is an extremely strong market for housing in the Chino Valley cities of Chino, Chino Hills, Corona, Ontario, and Rancho Cucamonga and I am seeing homes sell for as much as 10% over what they sold for earlier this year. I don’t believe that we will see the kinds of appreciation that drove the real estate market and our economy to collapse; however these things indicate to me that along with the extremely low mortgage interest rates, that this is a great time to get into the real estate market!

While home values are still being driven by short sales and bank owned properties and have fallen as much as 45% or more since the height of the 2006 real estate market,  If you've been waiting on the sidelines for the real estate market to hit bottom, I highly recommend that you start seriously looking, especially if you are interested in affordable homes in the $300,000 to $400,000 price range.

With the home buyer tax credit scheduled to end on April 30th, my expectation is that the Chino Hills housing market will further stabilize and the strong buyer demand which drove the market up as much as 15% or more from last year will level off. It is important to remember that even with the rebound in home values the Chino Hills real estate market is still down around 25% from the high we saw in 2006 which is quite a relief for many home owners who saw their home equity drop as much as 40%.

Another welcome sign of recovery in the real estate market are lower rates and somewhat easier terms of Jumbo mortgages which reflect newfound confidence among banks in the housing market. Jumbos unlike, conforming mortgages under 500,000, aren’t being propped up by Uncle Sam so the interest rates reflect the true market which were traditionally 1/4% to 1/2% higher than conforming mortgages. In February the premium for a Jumbo was around 3/4% which has dropped from as much as 2% in 2008.

While the home buyer tax credit is an exceptional opportunity, it’s important to remember that interest rates have far more effect on home affordability and current interest rates which are now under 5% coupled with the exceptional home values make housing more affordable than it was even before the start of the real estate boom in 2002 when mortgage rates were as high as 7%.

f you’re one of the buyers who are waiting on the sidelines for the real estate market to reach the bottom, you need to be asking yourself "how do I know when it’s the right time for me to buy". Here are some things I tell my clients to think about to help them determine the purchase strategy that’s right for them.

1. Every home buyer and every home are different.  In my opinion, finding a deal isn’t as important as finding the right match at the right value. The current large selection of homes for sale and motivated buyers provides a better selection of homes to choose from and the ability to negotiate a price based upon similar homes in the area that are not as close a match for you.
   
2. Real Estate should be a long- term investment.  During the super-heated real estate market over the last couple of years, buyers got used to viewing property as a short- term investment where they could sell for a profit or refinance in as little as a year or two. Traditionally, most real estate professionals have advised to plan on holding real estate for 5 years for it to appreciate enough to be able to sell and see appreciation. You should plan on purchasing a home where the payments are comfortable and you would not need to think about selling for several years.
   
3. Should you try before you buy?  You can rent a house in the Chino Valley for the same or less than it would cost to purchase a similar house. If you are planning on moving here from out of the area, it may make sense to get a feel for what it would be like to live here and help you to decide which neighborhood you would purchase in. In addition, if you will be working in another area, renting first before you purchase may be especially attractive in order to test drive what the actual commute will be like on a day-to-day basis. To get a feel for properties for rent in the area, I would encourage you take a look at my list of homes for rent in Chino Hills, Chino, Corona, and Ontario.