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In answer to my question, Mrs. Smith stated, “We’re timing the market. We think there’s more room for correction. We’re waiting for it to bottom out.” I met Mrs. Smith recently when she and her husband, both seniors, relocated to Encinitas from Minneapolis to be closer to family.

They were hesitant to buy Encinitas homes for sale and were leaning towards renting. Interesting because they planned on retiring in Encinitas. As an Encinitas Realtor, who prided himself on guiding clients towards prudent decisions, I wanted to make sure Mrs. Smith made a fully educated one.

These comments by this nice lady, who was elated at having finally escaped her cold winters, are common among buyers. Where did Mrs. Smith gain this wisdom of the housing market? She simply read the paper. There had been four years of data that proved the market has been in a general decline since late 2005.

At certain price points of Encinitas real estate, like the lower priced Encinitas condos for sale, there are obvious signs of correction, but in many segments, especially the higher ones, the turnaround point is unclear. This makes her a savvy buyer. Or, does it?

First, the Smiths will need to get a mortgage. It is unlikely rates will remain near the historic lows they are at today. This means dollars that could go to retirement savings would likely go towards their mortgage bills if they waited too long.

I then asked, “How will you know when the market bottoms out at your price point?” “We’ll know the market has bottomed out when the paper says so,” Mr. Smith said. “I agree,” I said. “Though, aren’t you concerned they won’t declare it until after many months of positive data, and by that point don’t you think there will be a lot more buyers to compete with?”

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 respect and appreciate Mrs. Smith’s conservative approach to the market. I’m sure all of the other buyers out there looking for that same single story appreciate her approach to. Mrs. Smith, if you’re going to retire in Encinitas, isn’t it time to start looking for the perfect home now?

The author is a Encinitas Realtor that works with Encinitas homes for sale and condos.