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The Home Fax

National & Local Real Estate Market Cycle Factors

Have you ever wondered how or why the real estate market follows cycles?

As with most concepts, ideas and opinions vary, and very few scenarios should include a blanket statement answer. Fact of the matter is that many aspects contribute to each area, with such complexity that truly determining the entire list of factors that affect any market cycle change, or series of changes, is not realistic or probable.

With that being said, there are certain high level aspects nationally and locally that contribute, affect, and determine the transition and current state of any real estate market. If you’re a real estate professional, investor, or financial company, you’re probably already aware of national and local factors that contribute to the market cycle changes within the real estate industry.

Why though are national and local factors important, even for consumers (buyers and renters) and non-industry related professionals?

If you can recognize, even as a one-time home buyer, the current national and local factors that contribute to a real estate market cycle, then you can feasibly understand, with educated reasoning, how those factors help you make a smart financial investment that ultimately allows you to Know the Home Before You Buy™.

As discussed by Dean Graziosi, one of the most highly acclaimed real estate investors in the country, various components exist within both national and local real estate market cycle factors:

National Factors:

  • Interest Rates: (High Importance)
  • Business Cycles
  • Inflation
  • Flow of Investment Funds
  • Cataclysmic Events: (Usually Unpredictable)

Local Factors:

  • Supply & Demand: (High Importance)
  • Neighborhood Trends
  • Migration & Job Growth
  • Development Plans
  • New Construction

Next week, we’ll dig a little deeper into each national factor component, exploring more information and aspects that relate and contribute to the current, past, and future predictability of national and local real estate cycles.

Until then, Know the Home Before You Buy by visiting www.NationwideHomeFax.com for all of your national real estate information needs & be sure to schedule your next seller’s inspection, pre-listing inspection, or home inspection with Home Fax Inspections.


Nationwide Home Fax LLC, its affiliates, The Home Fax™ Blog, and the author of this posting are not affiliated with Dean Graziosi, or any of his relatable entity(s) or party(s), and have referenced information used through this posting strictly as a secondary source from Mr. Graziosi’s book How to be a Real Estate Millionaire, without obligation or compensation.

Identifying Target Real Estate Markets, Cycles & Locations

Location, location, location…the real estate 101 catch phrase we’re all familiar with, if not engrossed in.

Why is location so important, though?

Practically every aspect of a home can be altered or changed with enough money, time and resources, except location. Even the most serious of home defects, such as foundations, structures, roofs or new electrical systems can be fortified, updated, replaced or repaired.

Then what determines a locations desirability?

If you’ve ever owned a home, you might understand how your neighbor’s home, the foreclosure down the street, city school systems, tax funding, and new development impact your home’s value. As many additional aspects also contribute to desirable locations and home values, these main components lead most people to avoid all properties in certain locations. Some people know so much about a location that they don’t even realize they missed a diamond in the rough because they failed to explore or reach outside of their single strategy.

Ready for one of the best kept secrets in the real estate market that the wisest investors don’t want you to know? You can make money in any location, through smart investments, by applying the correct strategy to the current market cycle.

What do you mean? What is a market cycle strategy?

Almost every aspect of investing (e.g. stocks, bonds, real estate, etc.) have market cycles. Within the real estate market specifically, there are common cycle points, often referred to through different names, including: Peak, Early Downturn, Full Downturn, Bottom, Early Recovery, Early Stable, and Late Stable. Check out the graph from Creonline.com below for a visual of what these mean.

When viewing a historical market cycle via line graphs, you’ll generally notice that the market resembles a roller-coaster. That’s because the cycle is progressively advancing through each stage of the market over time. This is caused by various means, but often results in those who own real estate applying the incorrect strategy, not understanding that it is commonplace for a market to bottom out and peak, for instance.

Often times missing the correct point to apply a certain strategy will lead to selling at the time you should be holding, renting to a tenant when you should be selling, and overpaying purchase costs due to a lack of inventory or decision to follow the crowd.

So which strategy should I apply during each cycle?

The answer to this question is complex, but on a basic level real estate owners who generate wealth typically apply these general strategies during each respective point in the market cycle:

1) Peak: Sell

2) Early Downturn: Sell or Hold   

3) Full Downturn: Hold or Acquire

4) Bottom: Acquire

5) Early Recovery: Acquire, Develop and Explore Renting

6) Late Stable: Rent, Refinance, Improve, and Prepare for Selling

7) Peak: Sell

Next week we’ll check out more in depth information on each specific cycle and explore various strategies that can be applied to any location, as long as it’s the right time.

Until next time, make sure to Know the Home Before You Buy™ by obtaining your Home Fax™ Report and other real estate information from www.NationwideHomeFax.com and of course, all of your inspection needs from Home Fax™ Inspections!

Lighting & Decoration Safety Tips for around the home

Lighting & Decoration Safety Tips for around the home

Christmas is upon us with such wonderful celebration of the birth of our Lord Jesus Christ! As the days seem to fly by, keep your family safe with these lighting and decoration safety tips as you prepare for the seasonal festivities around the home:


  • Be sure to use Indoor or Outdoor Lights in the correct environment. Most are identifiable by the label. 
  • After checking Outdoor Lights for loose connections, frayed or bare wire, and broken sockets to avoid any fires, secure all strands safely to trees or the house as a preventative measure against wind damage. 
  • No more than three sets of standard size lights should be used with any single extension cord. Check and compare amp and voltage capacities in the breaker if you’re unsure of how much capacity the outlet can handle.

Christmas Trees

  • Most artificial Christmas trees are fire resistant (see label), while real pine trees have more fire hazard risk as they become dry. 
  • When purchasing a real tree, check that it is green, has fresh needles which are hard to pull or shake off, bendable needles that do not break, and a sticky resin present upon the trunk. 
  • Place the real or artificial tree away from radiators or fireplaces, and away from high-traffic areas, including doors. 
  • Never use real lighted candles on any tree, and be sure to keep matches, lighters, and candles away from children’s reach.

Hopefully these quick lighting and decorations safety tips for around the home will make your Christmas holiday brighter and merry! Find more holiday safety tips from The Home Fax™ by checking out these 4 Holiday Safety Tips & Touch-ups for Around the Home.

Please remember the reason for the season:
For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. John 3:16 (KJV) 

Merry Christmas to all!

Home Fax Inspections is a MI licensed, bonded and insured home inspection company with professional residential and commercial property inspectors servicing the Metro-Detroit, Michigan area with house inspections and home inspections for Buyers, Sellers, Agents, Realtors and more for local and non-local requests by appointment in all Michigan cities within Oakland, Macomb, Wayne, Washtenaw, Livingston, Monroe, Lapeer, Livingston, St. Clair and Genesee County, Michigan