No study of real estate investing would be complete without a comprehensive understanding of markets and how those markets are affected by economic conditions. Only through an understanding of this critical topic can the Investor properly understand their risk exposure and implement strategic investment planning and effective risk mitigation techniques. Market Cycles The following section will provide an overview of the four major phases of a real estate market cycle. Although each of these phases have specific characteristics that make them stand apart from one another, unfortunately, the initial transitions in and out of each phase may not be plainly obvious. The four market phases are listed below: – Sellers Market I (Expansion)– Sellers Market II (Equilibrium)– Buyers Market I (Decline)– Buyers Market II (Absorption) Each phase of this cycle can present the Investor with both challenges to overcome as well as opportunities to benefit from. The well informed and action oriented Investor will know what strategies to utilize during each of the phases. The following section will provide an overview on each of the market cycles. Sellers Market I (Expansion) During a Seller’s Market phase I (also referred to as the Expansion Phase), many of the key economic indicators … Continue reading Understanding the Real Estate Market Cycle and Uncovering Hot Emerging Markets-1652