Seventh Inning Market Cycle Stretches On, And On
February 28, 2017 | by Beth Mattson-Teig | National Real Estate Investor
The current growth phase is proving to be the energizer bunny of real estate market cycles, and it appears that there is still plenty more power to keep it going.
Since hitting bottom in 2009, the current cycle is now entering year eight of its upward trajectory. And despite signs that growth is slowing, or even flat in some cases, the common view is that this prolonged growth cycle will stay the course for at least another year—if not longer.
The real estate cycle is stretching out along with the current period of economic growth. “One of the reasons it has been so prolonged is that we came out of the recession and the financial crisis in 2008 and 2009 and we didn’t have the typical bounce back characteristics,” says William E. Hughes, senior vice president of Marcus & Millichap Capital Corp. Employment growth, for example, started out slow and has risen gradually. Low wage growth has also kept inflation in check.
