Real Estate Market Cycles Explained… for the 2008 Market
I’ve been getting a ton of questions from readers (keep ‘em coming! I’m getting a ton… but I’ll get to them if I have to work 18 hours a day to do it!) … and one theme has been occurring a bunch recently.
“How do housing cycles work and where are we right now in the cycle?”
To tell you the truth, this is an excellent question and is one that every real estate investor should be well versed on. The last housing boom (the 2003-2005 years) was driven further than it should have gone by “investors” who didn’t have a true understanding of the housing cycle and how it works.
They invested when the cycle was at the top… which as you know is a recipe for disaster for those investors.
Anyhow, our friends over at John Burns Real Estate Consulting just posted this video they just finished up that explains this housing cycle in plain English. I thought this is definitely worth sharing with you… so here it is. Enjoy!
(click the play button to get going)
The real estate marketing cycle is just like any other type of market. It has ups and downs… and usually has an upward trend over the long-term. Savvy investors (that’s what you NEED to become) understand housing cycles, why they act like they do, what comes next, and how to invest in each type of market in the cycle.
You might watch that video again and really learn up on the housing cycle so you can make smart investment decisions… also… I would HIGHLY SUGGEST that you do a bit more “edumacation” (hillbilly talk for “teach yourself!”) on housing cycles and understand how to get in at the right time… exit at the right time… and find the emerging markets before anyone else.
Here are a few books I’ve read and would recommend that you pick up. Seriously… knowing the housing market and how it works is a foundational thing that you NEED to know. Learn it or fall behind.
Here they are:
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If you are committed to being a successful real estate investor… please do yourself a favor and become an expert on real estate cycles and finding emerging markets. If you don’t… you’ll be just one of the crowd that is too lazy to work for your success… and you’ll be just a mediocre investor. But, if you want to jump ahead of 95% of the crowd… become a market cycle expert.
Just a note… as always… I’m totally transparent with everything I do on The REI Brain because I hate it when people (and other websites) think that we’re all idiots and can’t tell the difference between genuine and unbiased info… versus info with a hidden agenda. The links to the books above are affiliate links… so if you decide to pick those books up on Amazon and use those links above to buy… I’ll earn something like .75 (that’s 75 cents… not dollars) for referring the sale.
If you don’t want me to get that .75 for one reason or another (hate my website, don’t like me, hate it how much I use “…” in my writing ;-), whatever…)… head right on over to Amazon and look up the names yourself. Either way, you’d be doing yourself a huge favor by learning up on market cycles and those are two great books to help you do it.
Hey, my name is Trevor and I'm the founder of The REI Brain and a real estate investor since the age of 21. Right now, my focus in real estate investing is multi-family income properties and I have plans on moving more into the commercial real estate investment world in 2008 and beyond. 
May 5th, 2008 at 1:42 pm
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