Real Estate Stages Repeat Again and Again
But where are we now?
- Increased rents and cash flows
- The length of time to sell a property reduces
- Property prices begin to increase
- Much confusion in the media reigns about whether recent property value growth is sustainable
- Many potential property purchasers delay buying because they evidenced value falls or a slow market in the preceding slump.
- The cycle continues
- Rents rise to levels which place significant financial pressure on tenants
- The time it takes for a property to sell after being listed for sale reduces markedly
- Property prices rise
- Yields fall as prices rise proportionally more than rents rise
- There are few mortgagee/forced sales
- Property finance is easy to obtain and there are a number of new lending products making borrowing easier
- People borrow against their increased house values and spend this money on consumer items (TVs, boats, holidays, cars, etc.)
- There are many property seminars competing for investor dollars
- Property is a hot topic in the media. Initially there is much speculation about how price growth will continue, but later in the Boom the media turns its attention to the reduced affordability of property
- There is a lot of discussion about how this Boom will never end i.e. “it is different this time” and expectations that there will be no subsequent Slump phase
Don’t miss your opportunity to buy your first home, trade for a bigger home or simply downsize. Call for a free consultation at (949) 682-9930 or contact us . If you don’t live Orange County, we are connected with great agents in different cities and countries. There’s a good chance we have connections with agents near you. So contact us and our team will help you with your real estate needs or we will introduce you the right agent for you.