A lot of people have been asking me why the market has suddenly taken a turn. Fortunately this time, it’s a really good turn! The answer is quite simple if we take a look at the history of these real estate cycles.
I’ve been saying for over a decade now that these cycles, in recorded history, generally take about 20 years each turn. This is proven true over and over for the last 80 plus years. So, if we take a look at the last few cycle timelines, it just makes sense for this to be happening right now.
1985/6 – Real estate was booming – then – stock market issues, S&L crisis began
1988/9 – Things really fell apart – prices were at an all time high.
1998 – Prices started to return to the pre-boom spot (I specifically remember an oceanfront lot in Sanderling that we couldn’t give away for $250,000)
2000 – Activity went through the roof – the 10% ratio was introduced – property was selling fast, but no discernible increase in pricing, as the recovery was still in place.
2003 – 2005 – All hell broke loose. Prices soared, inventory was low, multiple offers on almost everything. We all remember those years.
2008/2009 – Once again, 20 years later another mortgage crisis and the whole thing fell apart.
2010 – 2019 – Very volatile times, especially for the northern beaches.
2020 – Once again, 20 years later we have another BOOM in activity, some areas are seeing a little boost in price, but overall no real trackable difference. It’s coming though!
All that being said, if you are thinking about buying – rates and prices are still quite reasonable. Income is high. I wouldn’t wait.
If you have been wanting to sell, get this…as of this week there are 850 properties under contract and only 792 single family homes active for sale. This is what anyone watching would call the “tipping point”.
I have seen in the last couple of weeks, multiple homes that have been for sale for YEARS, finally going under contract. Pay attention friends, it’s about to be another wild ride!
Here are some weekly stats to consider: (I’ve always said who needs a crystal ball when you track the statistics. This tells us everything we need to know.)
A new strategy is now needed to meet your real estate goals. If you would like to discuss the best strategy for you, please contact me right away!
