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Boom The peak of a property cycle with record capital growth figures
- Demand is extremely high and supply is extremely low
- Best market for selling property
- Difficult time to buy
- If home owner driven the rental returns are generally high
- If investor driven then rental returns are generally low
High Getting toward or soon after a boom where growth figures are above average
- Demand is high and supply is low
- Very good selling market
- Buying requires sound research
- If home owner driven the rental returns are generally high
- If investor driven then rental returns are generally low
Average Normal time of the cycle when the market is balanced and average growth is between 8-10%
- Demand is in balance with supply
- Steady selling and buying market
- Rental yields around 4-6%
Low The down part of the cycle either starting anew cycle or moving toward a bust where growth figures are below average
- Demand is low and supply is high
- Very good buying market
- Selling can be difficult
- If home owner driven the rental returns are generally low
- If investor driven then rental returns are generally high
Bust The lowest point of a property cycle with negative growth figures
- Demand is extremely low and supply is extremely high
- Worst market for selling property
- Best time to buy
- If home owner driven the rental returns are generally low
- If investor driven then rental returns are generally high
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