How To Time The Real Estate Market…

We’ve all heard the expression, “Timing Is Everything”.   Obviously,  if we knew how to time the real estate  market it would be like having a hen that laid golden eggs.  While we may not have a crystal ball, we do have access to “inventory”  and “absorption” rates through local real estate boards.  When inventory rises and absorption declines that’s a great predictor of a market that’s beginning to soften.  Conversely,  as inventory tightens and absorption rises that tells us that the supply is shrinking.  The classic economic theory of supply and demand is in play.  Contact a Realtor in your local board and have them tell you what’s happening with these statistics.  Remember, one month doesn’t make a market and an occasional blip on the radar happens.  What we’re looking for is consistent market behavior.  If the absorption rate in your local board is say 20% for 5 consecutive months and it starts to drop month over month for a few consecutive months, there’s a good chance the market is turning.  How I wish I knew this more intimately in 2007.  A little experience can go a long way…

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