I am sharing my own research which, I use for my own selfish reasons

I do not hold my self out as an expert. I am just a Real Estate guy, trying to feed his children!

In support of the statement above, I will readily change any and all beliefs, I have, when presented with facts, that would prompt me!

 

Civilization rests on change. This change is cyclical in origin. A rhythmic series of extreme changes constitutes a cycle. When a cycle has completed, another cycle is started. The rhythm of the new cycle will be the same as that of the previous cycle. Although the extent or duration may vary

 

You have the…

—        Seller’s Boom

—        Then the Buyer’s Boom

 

Busts do not follow Booms

Booms follow Busts

 

 

The Buyers Side

This is driven in the beginning by fear.

The beginning of the buyer’s side will be quite hazy, to all involved

As sales volume mounts and sales prices erode, it turns to despair, then to capitulation on the seller’s side

 

On the sellers side

The primary driver is greed and optimism

This is an easy market

This side always has a sharp quick upward value trend

This will eclipse the previous value trend, as a sum

If you have a ready supply of cheap money

A “Mania “may form.

 

What is a Mania?

 

An excessive or unreasonable enthusiasm

Historical Examples

 

 

You have to understand that sales volume on the sellers side drives prices up once Inventory is eroding

On the buyers side it drives them down.

 

The Market is a pendulum that forever swings between unsustainable optimism

Which makes Real estate more expensive

And Unjustified Pessimism

Which causes Real Estate to be Cheaper

The Intelligent Investor is a Realist. Who buys from Pessimists and sells to optimists

 

Boom times are a time for Courage

Bust Times are a time for Discipline

By doing this you will not be swayed by the swings in the Market

In the End….

How you behave is much more important than how the Markets Behave