Sept. 6, 2008

One Sure Way to Know when Real Estate Market Hits Bottom

In this post, Pasadena California Real Estate blog will reveal the secret and answer the question that every real estate home buyer has been asking recently.

How do I know when the Pasadena real estate market hits bottom?

Ladies and gentlmen, the answer is very simple:

There is only one way to know that the real estate market has bottomed out and that is when the real estate prices start going up!

Simple, isn't it?

There's no way, none what so ever, to time the real estate market. Many have tried and some lucked into buying at the right time at the bottom of the market.

Take a look at the graph below. It shows how difficult it is to time the real estate market because it's not consistently linear.

Gary Keller, the author of "The Shift" explains it as the real estate buyers being in the lucky or unlucky zones or purchasing a home in the "safe" zone.

Gary says "You know the market has bottomed out when it starts back up and you know the market has peaked when it starts back down. The safe zone is where smart people plan to buy an dsell. Anyone who buys at the top of a real estate market is just unlucky and anyone who buys at the bottom of a market is just lucky."

Gary goes on to say that "people who buy in a buyers' market are the smart ones. They're buying in the safe zone and living in the area of certainty. They're not unrealistic and they're not greedy. They know they can't predict the end of a bust, but they can see when a market has fallen consdierably."

So if you are interested in buying a home in Pasadena and are wondering if the Pasadena market has bottomed out, ask yourself:

Has the market dropped enough to make a sensible purchase?

To help you answer that question, track the Pasadena real estate monthly statistics report that are available on this Pasadena Real Estate Blog and sign up for Pasadena real estate market weekly statistics that I make available to you from Altos Research. I'd love to hear your thoughts on whether or not we're close to seeing Pasadena real estate market bottom out.

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