Just The Facts, Ma'm

• Because the U.S. dollar is weak right now and home prices are low, many foreigners are buying American real estate. Consider a REALTOR® who has partnerships with mortgage brokers or attorneys who work with international clients. The "Home, James!" team at Prudential California Realty is just such an agency. Check them out at www.homejames-california.com or www.invest-in-california-property.com.

• In many markets, there are a lot more homes for sale than there are buyers. That means you should be able to negotiate a better price than if there were multiple buyers for each house for sale. The southern California market bottomed in late November-early December. We've had a very strong Dec-Jan-Feb and Mar as investors gobbled up the foreclosures and short-sales. The prime ocean-view and oceanfront estates held up well and we have seen a return of multiple offers on many properties once again. The Greater San Diego market has certainly firmed and it is what we call a "market-in-transition" - one going from a Buyer's Market to a Seller's Market. Now that the sun has come out and our typical southern California weather has returned, the people are out buying in droves. Sellers are far less likely to negotiate than they were back in the summer and fall of 2007.

• Some new home sellers are offering buyer incentives, such as help with closing costs or down payments. Many new home builders are making features that used to cost extra standard in order to move inventory. But even those deals are going away fast. Our government has gone to great lengths to aid the real estate marketplace.

• Consumer confidence is showing signs of inching higher. According to the ABC News/Washington Post consumer comfort index, sentiment increased four points to -30 in the week ending March 9. This marks the second consecutive weekly gain. Over its 19-year history the index has ranged from a high of 38 in January 2000 to a low of -50 in February 1992.

Bottom Line: We have seen the bottom and prices are firming. We expect that by the end of 2008, prices will be back to where they were in 2005 - at the peak. We also expect interest rates to start rising significantly in 2009 and that always results in rising home prices. Some estimates are that home prices will be 30% higher than they were at the peak by the time 2010 gets here!