Timing the Real Estate Wave

Real Estate is the World's Largest Man Made Wave Pool

I know the title may seem a bit odd. Maybe even a little crazy, yet you'd be surprised how true it is. Consider the ebb and flow of any market; real estate, stocks, bonds, etc. Markets are alive and rise and fall with the times. Real estate is the largest of these markets because everyone needs a place to live. Not everyone invests in the stock or bond market. Now that we've established the analogy and labeled real estate the king of all man made wave pools, let us take a closer look at how this ridiculous statement makes complete sense.

The Rise and Fall of the Real Estate Wave

Similar to the economy real estate is cyclical. This means that it will pass through phases only to return to the same phase years later. To better illustrate this theory here is a chart taken from Wikipedia's Business Cycle page.

As you can see, the wave reaches its peak and slowly falls. Once this wave hits rock bottom it rises higher then ever before. This cycle is then continued time and time again. The good news for real estate is that prices, like the wave, will always rise over the long term. Economically speaking, this theory makes complete sense because land is scarce. This means that we cannot create more land then there already is. Since the world population is always growing and the amount of land remains the same, we can conclude that the demand for this land will be greater over time. This increase in demand is what ensures that prices will rise and your real estate investment is a good one......

Do to the length restrictions on this blog I have posted the remainder of this real estate market analysis on the following page.

http://www.realestatewebmasters.com/blogs/michaelpennisi/catching-the-real-estate-wave.html

I look forward to hearing any comments you may have regarding my research. I hope you enjoy.

Sincerely,

Michael Pennisi

www.MichaelPennisi.com   - The Key to your Dream Home

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