The Point of Realization « Phoenix Homes Blog

The Point of Realization

12Dec08

Strange as it seems, just three short years ago buyers couldn’t stop making multiple offers on homes as the prices kept going up and up. Fast forward to 2008 and now prices have dropped lower than 2003 levels. The real investors waited and are now buying in not a sellers market, but in a buyers market. Play this game with someone sometime. Draw a line going down and tell them to stop you when it’s reached the bottom. As you draw your line down, make a turn going back up at anytime. They will just about always stop you just as you have rounded the turn going back up… but they always miss the bottom. It’s the same with the current market. Housing prices have been on their way down for three years and I still have people say “It’s going to be a while before they come back up.” Yes there are indicators to look at that help point to where the market is going, but nothing will help you know when the market is on it’s way up until it’s already going up… just like the drawing illustration.