Market Update - Have we hit the bottom yet?
Wednesday, February 9, 2011 at 8:00AM | by David Tinjum By Cynthia Froid
This is a question we are asked almost every day by our clients. Timing the market can be very tricky, but if you understand market cycles, and how to interpret market indicators you can make a very smart decision when choosing the best time to buy or sell a home. The following is what we teach our clients about the dynamics of market cycles:
Real estate values are driven by one basic and interdependent relationship - supply and demand. The natural drive to balance supply and demand produces a dynamic cycle that ebbs and flows, like all things. The three distinct market cycles are illustrated below. Based upon activity that we are seeing today (current inventory being absorbed, many new hires relocating downtown, fewer days on market), it is our belief that we are in the very early stages of phase 3: the absorption cycle.
The Mill District Market Update is provided by guest blogger and local real estate expert Cynthia Fdroid with The Cynthia Froid Group located in the Mill District of Downtown Minneapolis.
