The 5 Phases of the Real Estate Market
We're Heading into the "Shift in Prices" Phase of the Real Estate Market!
We believe the Real Estate Market consists of 5 Phases:
- Mania - Prices rise at an alarming rate, homes sell with multiple offers over asking price in just a few days, your classic Sellers Market, but on fire!
- Peak - Inventory starts growing as sellers begin to discount their asking price as buyer demand softens.
- Shift in Prices - Rising inventories, more sellers are forced to lower prices as they have to compete with other sellers, and buyers are waiting longer.
- Return to Normal - The recovery process begins as the market becomes more balanced with buyers and sellers having a fairly equal say in the sales process.
- Return to Sellers Market - Sellers gain the upper hand once again as more buyers enter the market and prices begin to rise steadily.
At the moment, we've got a huge headwind that's slowing everything down and we're currently experiencing the end of the Peak and the beginning of the Shift in Prices phases.
Watch the video as David explains each phase and why we're sprinting into the 3rd phase!