According to real estate company owner and market analysis, Dan Kirksey, the next boom has begun for Inland Empire home prices.
REAL ESTATE MARKET CYCLES ARE VERY PREDICTABLE IF YOU WATCH THE NUMBERS
My wife Carol and I have been in the Real Estate business for over 25 year. Watching people make incredibly good decisions and bad decisions has given us an almost 3D vision when it comes to real estate cycles.
In early 1990, people were lining up and camping out at new housing tracks just to get an opportunity to put a $1,000 deposit to hold a lot without knowing the final price. What we saw was that the inventory of available homes was going up steadily, and the number of days on the market were getting longer,. The fact was that “THE BUBBLE HAD ALREADY BURST” but only the number watchers could see it.
In mid 2005 the signs were there for those watching, the inventory had been increasing for 3 months, and the days on the market were getting longer, despite the ease of financing. Carol and I started being very vocal with our investors about getting out now or stay in for another cycle. Most listened, saving millions of dollars. In 2006 home equity loans were being made and consumers were using the money to buy investment properties at a feverish pace…“THE BUBBLE HAD ALREADY BURST” but only the number watchers could see it.
In mid 2009 for those watching, the market had hit bottom, Carol and I once became vocal about this new buying opportunities with our customers. We represented many purchases that have now in 2016 increased value in excess of 200%.
The second quarter of 2016 is feeling a lot like 2004 with inventory steady, and properties listed at market value or even slightly above are selling quickly.
2017 and 2018 we should see dropping inventories and steady value increase with the bubble bursting once again in late 18 or 19.