Real estate cycles from another angle

Over the past 30+ years, the period between a recovery beginning and a major “market adjustment” (or bubble popping) has run 5 to 7 years. We are currently about 2.5 years into the current recovery. 

Periods of market recession/doldrums following the popping of a bubble have typically lasted about 4 years. (The 2001 dotcom bubble and 9-11 crisis drop being the exception.) Generally speaking, within about 2 years of a new recovery commencing, previous peak values (i.e. those at the height of the previous bubble) are re-attained – among other reasons, there is the recapture of inflation during the doldrums years and simple pent-up demand.

Case-Shiller_Simpl-Percentages

Our complete article on market cycles is online here: http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby 

 

Did you like this? Share it:

Leave a Reply

Your email address will not be published. Required fields are marked *