Understanding Real Estate Market Cycles: When to Buy and Sell
The real estate market is influenced by cycles of growth, stagnation, and decline. Knowing these phases can help you make informed decisions about when to buy or sell property.
- Expansion phase. Demand exceeds supply, leading to rising prices. This is a seller's market, ideal for listing your property.
- Peak phase. Prices reach their highest point, and competition slows down. Buyers should be cautious during this period.
- Recession phase. Prices drop as demand decreases. This can be a good time for buyers to find deals.
- Recovery phase. Market activity picks up again, signaling the start of a new cycle.
By tracking market indicators and trends, you can maximize profits and minimize risks in your real estate transactions.
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