Here's How You Tell When the Real Estate Market Has Hit Bottom

Here's How You Tell When the Real Estate Market Has Hit Bottom

The good news is that you'll know soon enough when real estate prices hit bottom.

The bad news is, by the time you know, it will be too late.

Investors and investment gurus have been trying to call the tops and bottoms of commodity markets since the beginning of civilization.  Yes, real estate is a commodity.

Yet there are millions of prospective buyers out there who tell agents they're on the sidelines for now, waiting for that "sweet spot", that absolute lowest price they can possibly pay.

By the time you figure out what the true market bottom was (I use the past tense here because it will be apparent to you when the market becomes unstuck and begins to rise), interest rates will begin to uptick.  The Fed will tighten because they perceive inflation is on the march again.  And mortagage rates will follow suit.

Above all, there will be complaining by buyers and investors who will still want to offer that rock-bottom price for homes.  But the market will take care of the rest.