Did you know the pessimists casting doubt on the real estate recovery actually prove that it is here?
Despite the overwhelming majority or experts, economists and analysts agreeing that the real estate market has turned the corner sensation seeking individuals and media are still producing the odd story of how “it might not be the end yet”. Funnily enough this is actually one of the typical signs of a housing recovery, when the media casts confusion and questions the sustainability of a new rebound, while some would be investors hold back in fear because of a recent slump. Let them wait; we all need someone to flip our real estate investing deals to at premium prices.
More signals that mark a recovery period include:
- Property prices rising
- Marketing time reduces (DOM)
- Rents and cash flows go up
Have you seen any of these happening?
Real estate cycles remain the same as they have always done. Some will always argue that “this” time it is different but it isn’t really is it? A typical slump is defined by falling values, increased foreclosures, and extended marketing times, high vacancies and tighter lending. Any of that sound familiar?
So if we have seen all of the regular signs of a boom, slump and recovery, it is only common sense that we are on the verge of another boom.
Even if the pessimists are right and property values dip another 5% in some regions before beginning a strong boom, it doesn’t really matter for real estate investing pros. You are either flipping properties in a few days so that you don’t get caught out and have far more cushion than that anyway or you are buying to hold for the next 5 to 20 years in which case it won’t affect you either.
Yes, we’ll see another bubble in a decade or two, just don’t forget the cycle and pass your real estate education on to your kids so that they don’t make the same mistakes as so many others did in the recent bubble.