Understanding Property Market Cycles
Have you ever heard of the Property Cycle?
An economist called Fred Harrison looked at over 200 years of property price data and discovered that there is an 18-year cycle between each time the property market had a “correction” or a crash as we call it.
Not only does it follow the 18-year cycle between crashes, it also has distinct phases throughout the cycle where prices rise, wobble or boom.
Usually after a crash there is 2-4 years where not a lot happens whilst everyone recovers from whatever the crash was caused by.
This is followed by about 7 years of modest growth until there is a wobble for another 2-4 years where people lose their confidence slightly in property prices.
Once we’re through that wobble there is another period of growth for approximately 7 years which is known as the boom phase before another crash happens.
Now, I’m sure you’re now asking, where are we currently in this property cycle?
To find out, watch the second episode of Property Success Bites where I go into it all in detail.
If you have any questions let me know in the comments!