| One strategy to help you calculate the direction of | | | | gradually or escalating by 12 percent higher over the |
| home prices is to study its past performance. By | | | | previous five years? Are market prices deflated and |
| arming yourself with knowledge about the local real | | | | dropping quickly? Do you see more homes in |
| estate market cycles will relieve you of the emotional | | | | foreclosure? Where does the market appear to be |
| roller coaster associated with buying a home. When | | | | headed? |
| you take the time to understand past performance, | | | | History reveals certain regions of our country-rust |
| you'll understand the real estate market goes through | | | | sector, farming sector, oil sector, sun sector, and |
| periods of economic growth and stagnation. | | | | defense sector-have undergone fiscal devastation. But |
| A review of past history will reveal the fact many | | | | as time passes into the 21st century, most of these |
| homebuyers and real estate investors only focused on | | | | sectors have made a triumphant return. Home prices in |
| the existing economic climate-or, even worse, were | | | | these regions have reached historic highs. |
| excessively optimistic about the market's future. To | | | | All real estate markets can suffer a decline so it's |
| prevent this same mistake, you need to decide how | | | | important not to take a strong home market for |
| strong your local economy is. Do you notice a lot of | | | | granted. Take the time to research all the facts about |
| positive economic indicators? Has the home market hit | | | | a community and the local region. Be realistic and |
| a plateau and started regressing? Before you commit | | | | accept the fact a real estate market can heat up and |
| to purchasing a home, make sure you take the time to | | | | cool down over time. If the immediate forecast of |
| answer these revealing questions: | | | | available jobs in a community seem shaky, you may |
| -Is unemployment on the rise with more claims been | | | | want to consider focusing on an up and coming |
| filed? | | | | neighborhood, bargain properties distressed sellers |
| -Do you see a lot of available jobs as you read your | | | | (foreclosures, REOs), or a property you can fix up and |
| local newspaper or online resource? | | | | resell for profit. |
| -Do you witness an increase or decrease in office | | | | One strategy to help you calculate the direction of |
| building occupancy rates and rents? | | | | home prices is to study its past performance.By |
| -Are more businesses seeking relief from their | | | | arming yourself with knowledge about the local real |
| creditors by resorting to the legal option of | | | | estate market cycles will relieve you of the emotional |
| bankruptcy? | | | | roller coaster associated with buying a home. When |
| -Where are used car values headed? Are luxury cars | | | | you take the time to understand past performance, |
| going up in value or declining? | | | | you'll understand the real estate market goes through |
| -Do you see the sales price of properties rising | | | | periods of economic growth and stagnation. |