In Which Phase Of The Housing Market Cycle Should You Invest In A Rental Property In LA?
Briana Frazier Everything in life is in cycles. We move from one stage of the cycle to another stage of the cycle. It is likewise investing in real estate. The real estate market is quite a dynamic one; it operates cyclically from one stage to another till it goes round to its initial stage. Investing in real estate can thus be very dicey as the market cycles in real estate differ significantly from one another.
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verything in life is in cycles. We move from one stage of the cycle to another stage of the cycle. It is likewise investing in real estate. The real estate market is quite a dynamic one; it operates cyclically from one stage to another till it goes round to its initial stage. Investing in real estate can thus be very dicey as the market cycles in real estate differ significantly from one another. Explaining the housing market cycle The housing market cycle can be measured by the changes in the residential property prices and the number of transactions on residential investments undertaken over a period, which are often expressed as a reflection of the overall general market cycle. Simply put, housing markets tend to move in cycles due to the desire to make economic gains, i.e., new construction is completed to meet the rising demand for real estates. Typically, real estate operates in four phases. They are briefly explained below: • Expansion This phase of the housing cycle is known as the seller’s market. Investors tend to make the
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The Power Is Now Magazine | OCTOBER 2020
