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There are several reasons why buyers should want to be active this week.3/15/2010 to 3/19/2010

Government assistance is ending - The $8,000 first time homebuyer incentive is ending as I have previuously mentioned it may or may not be extended again.FHA 96.5% to 100% financing could be ending again look at my past blogs and Real Estate articles.And the Government purchase of (MBS) Mortgage Backed Securities is ending again see my past articles and Blogs.The Government being the biggest purchaser of (MBS) leaving the market will create a vacuum - Come on folks this was taught in our first classes of Economics 101 of Supply and Demand.

As supply is always low, there is never an abundance of properties to look at. So, if a property is available for sale today, a buyer may want to take the opportunity to act if it is an asset that they consider “core” (for them which differs from investor to investor) as that asset is not likely to be available in the future when the buyer has perceived the market to have bottomed out.

It is Nearly Impossible to Call the Bottom: After all, we only know that we have hit bottom after we are past the bottom. Some investors feel optimistic about the market moving forward, and believe we have already hit bottom. Fearing that they may miss the buying opportunity, they are deciding to jump in today to take advantage of market conditions.

Inflation: With the U.S. Government having doubled the money supply of the country in 2009 (the increase was greater than the aggregate increases over the last 50 years), many investors feel that inflation is likely to follow. During an inflationary period, hard assets are assets of choice as their value will rise in conjunction with inflation. Commercial real estate is a particularly attractive hard asset under these circumstances. The key would be to buy the hard asset before inflation kicks in, locking in long-term, low-interest, fixed-rate debt. As inflation kicks in, it would drive up the value of the asset and the advantageous debt terms create an even better performing investment.

If we are not at the Bottom, we are Very Close: Another reason to buy today is because if we are not at the bottom, we are certainly close to the bottom. Nationally, investment property prices are down 30% to 40% depending upon the marketplace.

It is impossible to accurately time the bottom of the marketplace. If we use an equity market analogy, when Citigroup stock hit $1 per share, if an investor was only willing to pay 95 cents and decided not to purchase because they thought the stock would fall farther, would that investor really care if they had purchased at a $1 with today’s price of $3.92?

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