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The Peaks and Valleys of the Housing Market

Wednesday, January 18, 2023   /   by Nick Waldner

The Peaks and Valleys of the Housing Market

The four types of markets and how it affects your real estate plans.

What do the peaks and valleys of a real estate market look like? In a nutshell, the market moves up and down overtime. Today I’ll explain what this means for your buying or selling plans. 


There are four types of markets: One is a market that's rising, where home values are going up. The second is a market that's peaking, where we're reaching the top of the market. The third is a declining market, where home values are dropping, and last one is a market where we’ve already hit the bottom. 


If you ask where we are now, I can’t give you an exact answer; however, we can take an educated guess. At 1:18 in the video, there’s an illustration of our market cycle, and I’ll use it to pinpoint where the market has been in the past several years. The truth is there are pockets in the market that are just peaking today, and there are others that have peaked a few months ago and are now just starting to climb. 


Your approach to selling in each of these markets will be different. By working with someone who understands these market cycles, you can develop a marketing plan that will help you capitalize on where the market is heading. If you’re a buyer, waiting for the market to hit the bottom may not be the best decision. The reason why we buy real estate is not simply for the investment portion; it’s also due to life’s changing circumstances. 


The cycles are important, but you also have to remember that if you bought a home at a market bottom, and sold one or four years later, you may not get the best return on your investment. However, if you bought and sold just when the market is peaking, the income you get will be much more. 


When you're looking to buy or sell a home, you have to understand what kind of market you’re dealing with. If you need more help with this topic or have any real estate-related questions, call or email me or my team. I’m always happy to help!