In a recent New York Times article entitled It May Be Time to Think About Buying a House, New York Times financial writer Ron Lieber writes "Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers".  No where is this more true than the Chino Valley where homes prices have fallen as much as 45% from the peak of the market in 2006.

While far from perfect, I believe that the Emergency Economic Stabilization Act of 2008 will provide a long term fix to America's troubled real estate and credit markets allowing home sales, mortgages, and foreclosures to return to normal from the roller coaster ride they've been on over the last year. In addition to allowing the government to purchase mortgage-backed securities, this legislation also requires federal entities that hold mortgages to develop plans to minimize foreclosures. I believe that the will see many fewer distressed sales as programs like the FHA Hope for Homeowners to allow homeowners owners to keep their homes by refinance with lower interest fixed-rate mortgages and forgiveness of mortgage balances that cause the owner to not have any equity.

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.

If 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.