housing market cycle

The housing market cycle refers to the natural pattern of ups and downs in real estate prices and activity. It typically moves through four phases: expansion (growth, rising prices, increased sales), peak (highest prices and activity), contraction (slowing sales, declining prices), and trough (bottoming out, low prices, reduced activity). These cycles are influenced by economic factors like interest rates, employment, and consumer confidence. Understanding this cyclical pattern helps buyers and sellers make informed decisions about timing their transactions, as prices and market conditions tend to fluctuate predictably over time.