Jethro's Braindump

The Real Estate Cycle

The real estate cycle is equally affected by investor psychology and economic activity, but unlike the other cycles, it factors the following crucial ingredients:

  • Real estate development takes a long time; supply is inflexible and cannot be easily adjusted with demand
  • There is extreme time lag between conception and readiness for sale

Investors can incur a greater risk here, but knowing their positioning in the cycle can aid investors in making investment decisions.