Timing The Real Estate Market - Can Investors Be Successful At Timing The Real Estate Market
Real-estate prices are prone to cycles. That's why timing is so critical to the true estate investor. But in order to determine when the appropriate time to purchase is, the investor must be educated and spend the necessary time analyzing the market.
There's without doubt that this is often difficult, even for the seasoned real-estate professional. The investor needs to keep yourself updated of most of the factors that assist in correctly timing the true estate market.
Now over the future you're almost assured to make profit real estate. But if you should be looking to help make the best usage of your hard earned money, timing is critical.
There are lots of boom to bust cycles in real estate. There are often short term periods of substantial price increases followed often by shorter term and less volatile periods of price declines. This really is often followed by periods of flat to small increases. The difficult part is determining when to purchase and when to sell.
Obviously, you wish to buy during the flat period just before the next substantial increase. This really is often difficult to determine. But if you study long enough, you are able to often spot the signs that assist in timing the true estate market.
Signs of a market top:
The media is publicizing that "many people are making profit real-estate";
There is of liquidity on the market, with easy qualifying mortgages and plenty of creative financing options;
Publicly traded homebuilders are reporting "record" profits;
Homeowners have experienced recent substantial appreciation and still believe that real-estate will go greater over the short-term; and
New house sales and building permits are in recent highs.
Signs of a market bottom:
Delinquencies and foreclosures are in multi-year highs;
Mortgage financing is now "tight" as fewer lenders will fund real-estate transactions;
The common homeowner believes that real-estate will go lower over the near-term;
The media is publicizing "how difficult the true estate market is"; and
Building permits and new house sales are in recent lows.
Now I don't want to make it appear that it's easy for the average investor to be proficient at timing the true estate market. It certainly is not. But if you study the markets and examine the signs you is a step ahead of numerous other investors. That could offer you all the edge that you need.