Housing prices may be falling but there's still a psychological hesitation by move-up buyers willing to take the plunge because their current homes have depreciated, says housing experts.

A buyer's market may be the "perfect time to move up" because your dollar will buy you more, but few homeowners are doing it despite the great deals out there, says Cameron McNeil, of Mac Marketing Solutions.

"The problem is psychologically it's hard for them (the move-up buyer) to see the condo that was worth $400,000 six months ago now at $320,000," he says.

"But if they've owned it three years-plus they probably have equity built up. The bottom line is if you can get a great price on a quality asset and you'll be in the home for the medium to long term it's worthwhile."

Still, it appears many of these would-be buyers are waiting until the prospects of selling their own homes improve. To help try and overcome buyer reluctance, many in the house-building industry have begun to introduce incentives to try and sell completed new home products.

As Jennifer Podmore of MPC Intelligence points out, while the company has noticed more people visiting open houses, there hasn't been a corresponding increase in sales. "MPC has been doing daily monitoring and we've seen a huge level in traffic to sites. We're definitely seeing more people looking," she says.

"What we tell people is you'll never be able to see the bottom (in this buyers' market) but as soon as you see something you like that you can afford then buy it."

In the case of the move-up demographic, Podmore points out most have owned their existing home for more than five years so should have enough equity built up in it to make a move to a larger home in Aliso Viejo CA worthwhile.

"The couple who had resigned themselves to believing a single family home was out of reach is now realizing it's possible," she says. "Their money is buying them more."

Gail Tachiyama and her husband Matt were also able to move up in this current housing market from a Aliso Creek condo to a  house in West Ridge in Aliso Viejo.

Their condo, which they only owned for one year, sold within two weeks for their asking price.

"The realtor said we should have asked for $10,000 less than what we got but we though we would give it a try. It was a newer building and we kept everything in good condition," says Tachiyama, who adds they were able to make a slight profit.

The big benefit was buying the three-bedroom, two-bath home and doubling the square footage of their old home -especially necessary for the couple who are now parents of 10-month-old Jamieson.

And while there are sales happening it appears those who aren't pressed to sell are opting not to put their home on the market.

The CREA's is also predicting an eight per cent decline in the average home price in 2009.

Real Estate Board David Watt says his advice to homeowners is to time the market to their life.

"If your jobs or income are vulnerable I'd stay away from (home buying)," says Watt.

But, he adds, if you are in a position to buy the "overall drop in prices is favouring the buyer moving up."

For more info on  The Aliso Viejo Real Estate Market  visit us on the web www.alisoviejorealestate.com.

Contact me Randy Hutchinson