I found this simple, interesting and educational info-graphic depicting the Real Estate Market cycle in layman terms and thought of sharing and talking about it.
Real Estate Market Cycle
The graph gives a good view on how Real Estate market works and helps us to understand where the market was a year ago and now.
We crossed the bottom bridge last year and now trying to climb up the hill. In many states especially metros like SF, Dallas, Austin, Phoenix and others, the climb has been very aggressive including Houston. We are seeing prices going up every week and now it's a total sellers market which is a total opposite from a year ago.
New Home builders are also increasing prices every week or every other week in many areas like Katy, Sugar land, Wood lands and Cypress due to demand and supply issue. We don't know when we will reach the peak and until that point buyers are fprced to put up with this situation. With the recent increase in interest rates, it's a real stress for buyers to make a decision whether they want to buy now or wait it out.
If they decide to wait until market slows down, they might lose the low interest boat but prices might stabilize reaching the saturation point. If they decide to go forward on hunting down a deal, they might have tough competition and might have to pay more than listing. I would say it is much better than waiting to lose on both ends but it all depends on one's situation. Do your due diligence with the help of Realtor and make a smart decision...
Image source: Biggerpockets.com