The Real Estate Cycle
I found this graphic on a power point slide I had put together a few years ago. Looking at it again, I firmly believe that we are in the “absorption” phase characterized by the arrow on the left side. Many of the symptoms of the bottom of the market have already happened and are improving. Rents have fallen but are now improving. Housing permits were down 26% last year. Vacancies have fallen, both in commercial and residential rentals.
It is still a buyers market and sales are not happening as quickly as some sellers would like but we are working again toward the top. Inventories are down and now is a great time to buy before prices spike again.
Have a great day!
