he last five to seven markets for months and even
years have seen a real years. Prices dropped like a
estate boom unmatched in stone in a lake. In one case, a
history. The boom has cooled off real estate investor friend of
which means dropping prices and mine picked up a home in Los
buying opportunities. Angeles that had dropped from a
price of $650,000 to $380,000.
Finding the Bottom of the Current When prices rebounded through the
Real Estate Market 90s and went nuts in the early
part of this decade, he saw the
When considering real estate, value of the property more than
historical lessons should be quadruple what he paid. Many
strongly analyzed and followed. suspect such a situation is about
In the current market, we are to repeat.
coming out of a boom period in
which prices are inflated beyond If you are considering buying a
the reasonable, objective value home, you might want to start
of most homes. As the boom cools analyzing the market. More than
off, we are seeing prices begin likely, you will find that
to drop. Ironically, this property values are dropping in
situation occurred roughly 20 your area. If you are patient,
years ago and provides us with you can wait till prices bottom
evidence of the buying out and pick up incredible deals.
opportunities to come. When prices rebound in the next
few years, you should see
In the late 1980s, the real tremendous gains on your
estate market became saturated. investment and really clean up.
When I say saturated, I means So, how do you do it?
flooded. Both homes and
commercial properties sat on One way to watch a market is to
identify homes you are interested market. It is now time to buy.
in that fall in different price
categories. Try to identify 20 or Timing a market as above can be a
so homes. Create a log of the bit or hit and miss situation.
homes, when they came on the There is always a chance your
market and their initial selling local market may not deflate even
price. Each week, keep track of though national trends suggest as
the status of the homes. Did any much. If you do not see a
sell? Did any drop their asking definitive downward trend in
price? The idea is to look for prices, you may want to skip this
trends that include it taking entire strategy and simply buy
longer to sell and asking prices now. Even if you buy at the top
going down. If you see these of the market, you should see
results, sit and wait. Just watch price recovery over the next five
the prices fall. Eventually, you years.
will see the prices flatten out.
You have found the bottom of the
About the Author:
Raynor James is with http://www.fsboamerica.org - FSBO homes for sale by owner.
Read more articles by:
Raynor James
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