When many people think of Southern California real estate, what comes to mind are beachfront properties, palm lined drives, and gorgeous views of the oceans from cliff tops. Southern California real estate is some of the most desirable real estate in the country, and also in the world. What is great news for buyers is that for the past two or three years, the Southern California real estate market has been in the hands of the buyers.

In the past few years, the prices for Southern California real estate have fallen to levels that are making perspective property buyers smiling. More people by far have bought Southern California real estate in 2008 compared to 2007. Sixty nine percent of Southern California real estate buyers claimed that lower prices encouraged them to buy, and 31% cited the low interest rates as their main motivation to make a move.

One reason that the Southern California real estate market came to be in the hands of buyers was poor underwriting of contracts that left buyers unaware and unprepared for fluctuating interest and mortgage rates. Many of these people who had signed an ARM, or adjustable rate mortgage, could not afford the high, fluctuating interest rates and mortgage fees. This resulted in an increase in foreclosures and lender owned properties being listed on the market.

The increase in costs of living also has made buyers postpone purchasing a home. These trends together resulted in a large increase of empty, available homes and people who could not afford to buy them, driving the prices of Southern California real estate down to the floor.

Since there has been such an increase in the number of homes available for purchase in the Southern California real estate market, buyers enjoyed a wide selection of properties available. In 2006, Southern California real estate buyers had only spent an average of 2 1/2 weeks searching for property. Traditional buyers visited twice as many homes before they purchased one this year when compared to 2007. 19% of Southern California real estate buyers were first time homeowners. They spent an average of almost 10 weeks with their realtor before buying a house, and in 2007, first time homeowners had only spent about 6 weeks searching before choosing one. Southern California real estate buyers spent more time searching through homes before contacting an agent in 2008, averaging 8 weeks, as opposed to traditional buyers, who searched the old fashioned way for 3 1/2 weeks for Southern California real estate.