The commercial real estate and housing markets move in a four-phase wave pattern known as the real estate cycle. Recovery, expansion, hyper-supply, and recession are the 4 phases of the real estate cycle. Whether you're a homeowner, renter, real estate investor, landlord, or real estate agent, knowing the real estate cycle will help you forecast future trends and make wise financial decisions.
The term initially appeared when experts started researching housing market movements about a century ago. The federal government's regulation of national policy over the past few decades has led to a gradual evolution of the real estate cycle into the four stages we now know. Different real estate experts can utilize this cycle to forecast the ideal moment to buy, hold, or sell. Investors frequently use the real estate cycle, but it may also be helpful to agents, buyers, tenants, and others in the industry.
Phase 1: Recovery
The real estate cycle is circular; hence the recovery phase comes...