Tuesday, 07 September 2010
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Buyers

How’s the Market?

I have this question asked more than any other question in real estate right now.

The Answer depends, are you buying, selling or investing? It’s the greatest for buying and investing.

You may ask why?

To understand this you need to know the following two things:

First, need to know the cycle of how real estate works.

The cycle is always moving it is either at the top of the market, falling, at the bottom, or on the
rise. The best time to buy is when it is falling and in the bottom right quadrant of the graph. Illustration below.

This real estate market is changing
right now. You will not know when the bottom has hit until it is on the rise. That is how we know where the bottom WAS.

Smart buyers and investors buy on the fall and sell on the rise



Second, lets look at the basics of supply and demand.

Ask yourself the question, has the supply of real estate been frozen? The answer is simply yes. Building has come to a standstill with the exception of custom homes. As far as the other factor of supply, there is no more land, we all know this.

Now is there
demand? Is there an interest from people wanting to buy? The answer is simply yes again. Our population is continually growing, people migrate, children are being born and people are living much longer. We are on pace to double our population every 100 years. That is significant growth every 10 years.

Q……..So when is a good time to buy?
A……..We have close to a perfect storm for buyers and investors.

I call this a Real Estate Trifecta: use this term I didn't trademark it yet.

  • Right now we are defiantly in the bottom right quadrant of the cycle
  • Interest rates are at historical lows
  • People want to sell


Q…….So who is going to bring back the economy?
A……..

YOU!!

 
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