How do you determine when the real estate market will make the turn and head up?

We talk to buyers every week that are hoping to win the real estate lotto. They want the best possible deal they can get on their dream home (Who can blame them?). But, many of them are hoping to hit the lotto. Their fear and/or obsession with buying their home at the bottom of the market may cost them the house they desire at a really good price.

We explain that interest rates are still at historic lows; that sellers are motivated and the selection of homes is fantastic, but – "when will the market hit bottom?" – they ask.

I'll tell you when the market will hit bottom – right before it starts heading back up. You'll know this in hindsight because no one can tell you the day and the hour that the market will turn and home prices will start climbing again; inventory will drop; and multiple offers will start flying in. 

If you are looking for that perfect combination of forces that signal a good buying opportunity for a home – look no further than today.

We just dropped off the keys to some clients for their first home. They got a good deal and a good interest rate. The house they purchased would not have lasted another day on the market, two back up offers came in after theirs was accepted. They considered a second counter-offer, but took our advice and signed the deal.

They are extremely happy. They're not at all concerned about when the market will turn, they are living in their new home now. In hindsight, I think they will find that they timed everything just right. 

My opinion, buyers have about four weeks left to get the house they want into escrow before things change. It won't be a big change, but it won't be in the buyer's favor either.