Where is the real estate bottom? My crystal ball is cloudy, but this is I what I do know:

*Home buyers appear in Spring.  I measure the Los Angeles real estate market by my telephone and my phone has been ringing since the last Saturday in January.  My calls have quadrupled.

*It seems likely that due to heavy government spending that we will have both inflation and interest rate increases. For approximately each 1% increase in mortgage interest rate, you will need a 10% drop in property values to afford the same payment.

Anyone with the required down payment should consider buying investment property.  If we are fortunate enough to see another rate dip, I think you should take advantage of it immediately. Otherwise you might consider waiting for that back up of foreclosures to hit and the Spring rush to pass. But in the meantime, talk with a seasoned loan professional and get your ducks in a row; when the time is right you can jump.  



If you are a first time buyer (one who hasn't owned a home in three years) the $8,000 tax credit is one more incentive.