Real Estate Cycles

Oy! When are things in the real estate market going to pick up? There are so many houses on the market, with many sitting vacant because everyone is too scared to buy. This does nothing to help the increasing number of foreclosures. Deals can be had for those who are ready to buy, however. During this phase, prices tend to fall in order to encourage home shoppers to buy.

Recession

Is that the light at the end of the tunnel? Things in the real estate market are starting to improve. Foreclosures are still high, but not increasing. The same is true with unemployment. The public is still generally uneasy about the economy, but we've made it through the worst.

Recovery

Now we're talking! Public confidence is increasing, and we're finally starting to see some properties moving. More buyers in the market mean a reduction in the high number of properties that have been sitting on the market.

expansion

as unemployment decreases, more and more buyers enter the market looking to purchase homes. The number of homes available decreases, so new home construction increases to boost the supply. Multiple buyers may be after the same property, causing bidding wars, which drive up prices.

over supply

Several different phases make up the real estate cycle. What are they? select all that apply. expulsion over supply inflation recession expansion recovery

over supply recession expansion recovery

during the ___ phase, the market begins to bottom out. We see home prices fall, while foreclosures increase. During the ___ phase, things start to improve, and they continue improving until they end of the ___ phase, when the market peaks. We see the market begin to make a downturn during the ______ ______ phase, when buyers are over-paying and activities are occurring at a rapid rate, which is no sustainable. hen the cycle begins anew.

recession recovery expansion over supply