Just as every part of the Real Estate market is experiencing monumental change, there’s something very familiar going on in the background.

It’s true, the sub-prime fiasco we’ve experienced is unprecedented. And affordability rates are at all-time lows. Meanwhile, technology has changed the whole buying/selling experience. There are record defaults and foreclosures on the horizon, builders offering unheard-of incentives and bankruptcy rumors surround the country’s largest lenders.

We’re in uncharted waters for sure…or are we.

Sure, it’s different this time, but the bottom line is we’re experiencing another market cycle. Just keep one eye in the rear-view - we had a fierce, long-term seller’s market (’01-’05) followed by a bumpy, volatile transitional market (mid ‘05 - ‘06) and now we’re in the full-blown buyer’s market (’07 - ??).

How long is it going to last? Who’s to say? NAR just changed their prediction from ‘08 to ‘09. The Fannie May guy says 2010. I heard one analyst say that prices have to come down another ten percent. I guess that depends on where you’re at.

So what’s it all mean? 1. Don’t sell unless you have to and 2. Buy if you can - because it will transition again at some point, and you know what comes after that…

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This entry was posted on Thursday, January 10th, 2008 at 5:38 am and is filed under Investing, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.