Apr 14 2009
Gauging the Bottom
Finding a real estate markets ‘bottom’ is no easy task – especially in these complicated financial times. Experienced investors will tell you that it is a fool’s game to try to find the bottom to make a buying decision … because as you wait and analyze the property market it makes its own moves and once you finally realise it the market’s usually on its way up.
Historically, the bottom of markets have lasted for a much shorter period than the top of the market. Statistically, very few real estate buyers make their purchases at the bottom or the top of the cycle. Most purchase some where in between.
The bottom of real estate markets won’t arrive announced and few people will realize that it’s even happening. Here are 10 signs from Opednews.com to guide you on whether the bottom of your market is near:
- ‘The number of homes For Sale is reducing as properties come off the market, especially the over priced properties that have been sitting on the market.
- The Mass Media spurs interest with talk of a bottom. Newspapers and television reporters speculate and ask the experts if a bottom is occurring like it’s a national (or global) real estate market trend.
- Sales volume begins to pick up, slowly at first as pent up buyer demand results in more showings.
- People are less fearful of the market.
- People begin to talk (again) about how much money there is to be made investing in real estate.
- Increasing inquiries to real estate offices on listings and for sale by owners.
- The Fed finishes tinkering with interest rates at least for a while, trying to get a handle on how the markets are moving.
- People commonly talk about the bottom occurring like it’s a thing of the past with increasing consumer confidence.
- Prices finally seem to stop dropping.
- Financing becomes easier to obtain.’
Be aware that all markets have their own ‘local’ bottoms and occur at different times.