Los Angeles real estate buyers hit the sidelines

If you've been in the market to buy a home in Southern California, then you know how high prices have become. The word is, buyers have hit the sidelines to wait for a correction in home prices.

In a recent article in the Los Angeles Times, Bob Taylor of Bob Taylor Properties stated, "Unless they can get a good offer accepted, about 75% to 80% of my clients are saying they want to wait up to one year for 10% to 15% price adjustments."

While that sounds like a great idea, is it realistic?

In the same article, real estate bear and director of UCLA Anderson Forecast, Edward Leamer, stated, "Prices are going to be a little weaker a year from now, and there'll be more listings and more choices."

However, Mr. Leamer is only predicting an annual 2%-3% drop in real estate prices per year for the next three to five years.

If Mr. Leamer is correct, Mr. Taylor's clients might be waiting 5 years, rather than 1 year to buy into the Southern California real estate market.

Moreover, if Mr. Leamer is correct, would renting for 1 year for a 2% drop in real estate prices be worth the wait?

More on the Southern California real estate bubble.