Boston Real Estate Blog

And The Ball Keeps Rolling…

Posted on February 20th, 2009 by Charissa Pemper

Anyone that has ever asked me to predict the future of real estate has probably heard the “ball rolling up a hill” metaphor.  Simply put, real estate markets are cyclical and historically resemble a ball rolling up a hill.  Each high point in a market has been higher than the one previous, and (this is the part people need to remember in our current market) each low point in the cycle is higher than the last - and is also higher than even the higher point in the cycle prior to one that has just “crashed”.  It’s the nature of the industry.

For those who have a little difficulty picturing this, here is an image that shows the past two cycles from 1985 to now, with a prediction of where the next couple years will bring us.

Real Estate Cycles since 1985

Real Estate Cycles since 1985

Charissa Pemper, Boston REALTOR®

Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com

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2 Comments so far

  1. by Chandler Real Estate

    On May 1, 2009 at 11:59 am

    Charissa-

    This is a great capture of how the market works. I hadn’t seen this before. It’s quite tellling. Now, is this a broader real estate industry curve (across the entire U.S.) or just Boston’s real estate market?

    We seem to be moving past the bottom here (with caution) in the Phoenix area. Our buyer activity has ramped up to record levels since the beginning of the year. Our inventory is way down as well. The only concern is when we might see additional foreclosures from Fannie Mae and Freddie Mac given the lifting of the foreclosure moratorium.

    Again, great representation here.

    David Lorti

  2. by Bobby Woofter

    On January 17, 2010 at 7:55 pm

    This is a very concise explanation of the cyclical nature of the market. I have linked this page to clients of mine. Well done.



2 Responses to “And The Ball Keeps Rolling…”