Real Estate IS Cyclical : Rooftop Views

Rooftop Views

Real Estate IS Cyclical

We hear it over and over again. What is happening to the market? Should I sell or should I wait? Is now a good time to buy?

We recently read remarks where brokers compared the number of homes on the market now to those on the market before the latest price run up. Amazingly, the numbers are pretty much the same. What does that mean?

It means that the market is turning again. Right now the market is steady or declining slightly as compared to the last 3 to 4 years where it was increasing – sometimes at an insane rate. Wait a little while and it will climb again.

In the mean time, Sellers need to get serious if they are going to sell. Pricing is key. Set the price BELOW the current comps if you expect to sell in a reasonable amount of time. And be sure the house is in perfect condition. If that’s not possible, then it may make sense to hold on for a while.

Buyers expect to pay less than in the recent past for a similar home. But in some cases, Sellers just can’t come down in price to meet your expectations. If you want the home, it is reasonable to assume the real estate cycle will come around again in the not too distant future. You may be OK to buy now and wait for the cycle to catch up.

As always, check with a Realtor. They are your best source of knowledge in this market.