The real estate cycle is a four-stage cycle that represents changes within the housing market. The four stages include recovery, expansion, hyper-supply, and recession. Understanding each phase and how it affects the housing market is crucial for investors looking to buy real estate.
What phase of the real estate cycle are we in 2023?
Phase 2- Expansion
Dr. Mueller's Q2 2023 report shows the current cycle stage from a national perspective across property types. The ideal rating is Phase 2- Expansion and Market Level 11.
What is the real estate cycle history?
The Four Phases of the Real Estate Cycle. The real estate cycle comprises four main phases: recovery, expansion, hyper supply, and recession. This implies that historically, there has never been a sustained expansion or hyper-supply period without an eventual recession, followed by recovery.
What is the 18.6 year cycle?
The 18.6-year cycle is caused by the precession of the plane of the lunar orbit, while this orbit maintains a 5° tilt relative to the ecliptic. At the peak of this cycle, the Moon's declination swings from -28.8° to +28.8° each month.
What is the final stage of the neighborhood life cycle?
All neighborhoods have a life cycle and are in one of the phases: growth, stability, decline and renewal.
Where in the economic cycle should you buy a house?
Recovery. This stage can be a good time to buy below-market properties to renovate and sell or rent when the economy recovers. However, timing is key, and you'll want to wait to put your home on the market until the economy shifts to the expansion stage.