The Real Estate Cycle

Based on figures that go back decades, we know that real estate values follow a definite pattern. “The Cycle” is from 7-10 years long. The peak of Washington County’s cycle was in Februray of 2006, at which point we fell into a “Buyer’s Market”. Simply stated this means that supply far exceeds demand; hence values must begin to fall and the market “softens”.  Just because a market is soft, doesn’t mean that appreciation can’t take place. In fact up to 60% appreciation can occur during the soft buyer’s market conditions. As inventories fall and demand rises again, prices begin to rise, until we again find ourselves in another “Seller’s Market”. Because there are so many factors involved, it is difficult to pinpoint exactly where the market is in the cycle. But rest assured, the cycle is real and it always continues.