"Should You Buy Now?"

Should You Buy Now?

Any investment opportunities, whether real estate, commodities, or vintage autos, follow a predictable cycle with several stages.

Optimism is the first period in which many people are excited about buying a home. In a strong market, purchases increase in value quickly, leading to euphoria, which can lead to hasty decisions. A downward cycle then begins from euphoria with prices starting to fall, then buyer denial. After denial comes fear, as prices continue to fall, followed by panic, despondency, and depression. After depression comes hope and then optimism (back to stage one).

The point of maximum risk for any investment is during the euphoria stage. The point of maximum opportunity is at the lowest point, between despondency and depression. That's exactly where we are in many real estate markets today. Clients who are motivated and qualified to purchase can hopefully recognize the market cycles and understand why now is a wonderful time to invest in real estate.