We have
heard this many a times, Real estate is cyclical. Nevertheless, real estate
patterns can be observed and predicted. It is with this prediction; people
invest on income properties and make sane financial decisions pertaining to
real estate.
On the other hand, seeing the fact that, real estate cycle moves
at its own pace, unlike the consistency of certain factors, sometimes it is
very difficult to predict. DC Fawcett says that Typically, the real estate market moves around four
phases or stages of life namely recovery, expansion, hyper supply and
recession. Let’s look all of them in detail.
·
Recovery-
This is a subjective
start point, where the revival and recovery happens from the last decline.
Well, it is generally said that this is the right time to buy, however there is
no denial of the fact that the market is no longer in a free fall. Signifying
high yet stabilized job loss, home foreclosures are said to be at peak during
this phase.
·
Expansion-
In the second phase, things will fall in place, employment,
growing realty businesses, rise in home prices, activated by a
reduced supply but escalating demand, more and more folks make their mind
up and go for buying real estate than renting. This paves way to expansion
on all fronts. During this phase of the real estate cycle, good deals are still
found, because of the market’s dealing with foreclosure mess which
formerly existed, however it must be worked for. Having said all that, the
entry of speculators comes into play. They are investors who closely rely on
future growth and pay more than expected for a particular property. These
speculators move us to the next stage.
·
Hyper supply-
skyrocketing prices, mass building projects… Demand at this phase instigates to diminish
as the supply built during the expansion phase reaches stability. With that said,
it is generally good to not get enticed by the wealth of other realtors. This
would create a greater impact.
·
Recession –
Finally the slump happens- recession. During this phase
real estate investors find middle grounds and jump in to find some great deals
and save the plunging economy.
How to
take an accelerated approach to real estate goals in a cyclic real estate
market completely depends on the type of investment you make. If you are
looking out for more information on the same, stay tuned to DC Fawcett virtual
real estate investing club blog and you will be entitled to have the inside
track on forthcoming opportunities with DC Fawcett at his seminars and webinars.
Conclusion-
DC
Fawcett is recognized worldwide as the leading creative thinker on real estate
trends; impacting the real estate entrepreneurial dealing. He is the proprietor
of virtual real estate investing club who has helped more than thousands of
aspiring realtors to reach their goals and become a successful real estate
entrepreneur. He has held a number of seminars which throw light on demanding
real estate concepts. For more details, stay updated to his blog and read his
articles to know how to get into a realty dealing which is scam-free.
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