When Will The Next Real Estate Market Downturn Happen
Q: Gerald, house prices have been rising for a while now. When is the next real estate market downturn going to happen? Wendy, Great Neck, NY.
A: Wendy, based on the historic 18 year real estate cycle, most local real estate markets in America are still in the expansion phase of the 4 phase cycle. We have to go beyond expansion to the hyper-supply phase before we would be faced with another recession. Based on the 18 year cycle, we’re about 7 years from another real estate market downturn. Bear in mind, that the 18 year real estate cycle is just a framework, what really matters is what actually happens in your local real estate market.
Thanks for your question, Wendy.
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