When the subject of a market shift arises, many agents start to panic. However, there’s no reason that this event should raise concern. Market shifts are normal and happen in every single industry. In real estate, in particular, the cyclical nature of our market is a long-established norm. After all, what goes up must come down.
Before the Great Recession began in 2006, real estate tended to run on a seven-year cycle. This cycle was split evenly in half, with trends rising for the first three and a half years and falling for the last. That said, the market is always slowly trending upward over time. This is why looking at the big picture is key.
“Market shifts happen, and they’re nothing to be afraid of.”
Therefore, since our market has been rising for an unusual 10 years (all thanks to the Great Recession changing the typical flow), there’s no reason to fear the market correction so many have been talking about. It’s all about balance.
In fact, it would be worse for our market if things never shifted. A continuous rise would only lead to buyer fatigue—a phenomenon during which consumers become unwilling to pay for the increasingly expensive commodities before them. This creates a plateau and disrupts the market cycle.
The point is that market shifts happen, and they’re nothing to be afraid of. In fact, I built up my real estate business in the middle of the Great Recession. It just goes to show that patience and long-term thinking is key. The current shift isn’t anything to worry about, so don’t let it impede your business.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
