A property cycle can be seen as a logical sequence of recurrent events reflected in demographic, economic and emotional factors that affect supply and demand for property subsequently influencing the property market.
The first recorded pioneer of studying property cycles was Homer Hoyt (1895–1984) in 100 years of real estate values in Chicago (1933). It is widely recognised that property (along with other forms of investment) follows a predictable cycle. The property cycle has three recognised recurring phases of boom, slump, and recovery. The cycle follows a consistent pattern which can be accurately assessed by following the trends of a collective basket of Key Driver (as outlined below).
Read more about Property Cycle: Property Cycle Phases
Famous quotes containing the words property and/or cycle:
“When a strong man, fully armed, guards his castle, his property is safe. But when one stronger than he attacks him and overpowers him, he takes away his armor in which he trusted and divides his plunder.”
—Bible: New Testament, Luke 11:21.22.
“The cycle of the machine is now coming to an end. Man has learned much in the hard discipline and the shrewd, unflinching grasp of practical possibilities that the machine has provided in the last three centuries: but we can no more continue to live in the world of the machine than we could live successfully on the barren surface of the moon.”
—Lewis Mumford (1895–1990)