Real Estate Market Cycles

Real estate market cycles refer to the patterns of growth, stability, decline, and recovery in the property market over time. These cycles typically move through four phases: expansion, peak, contraction, and trough. During expansion, prices and demand rise; at the peak, the market is at its height. Contraction follows, marked by declining prices and less activity, leading to a trough, where the market hits its lowest point. Understanding these cycles helps buyers, sellers, and investors make informed decisions based on market conditions. Awareness of these phases is crucial for navigating the real estate landscape effectively.