At any stage of the property cycle you will always find bargains, those properties, which for some reason or another are being sold below their true market value. It’s just that at the top of the property cycle they’re harder to find.
With all this said, you will only have a true understanding of the property investment cycle when you have experienced both boom and bust, because only then will you learn how to spot the warning signs that the market’s about to change.
What’s more, the property cycle, while strong and powerful in its own right, is always at the mercy of what’s happening in the wider economy and most particularly what’s happening to interest rates. So, if rates are low and people are feeling confident about the future, they are more likely to go out house-hunting, whereas in bad times, when rates are high and confidence is low, people won’t want to take chances for fear of losing their home, so they stay put until times get better.
It all makes housing prices interesting to many different people, so it’s hardly surprisingly that when the media run headline stories about property it can have a strong influence on the market, even triggering buying and selling sprees and adding a further aspect to both local and national property cycles.
But while you should always be aware of how the media can influence people’s behaviour, just because they are saying one thing doesn’t mean they’re right.
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