Source: Appraisal Buzz —
Implicit in the term “cycle” is that the real estate market is constantly in a state of flux. Real estate market cycles are specific to a submarket and property type. It is also specific to classification (A, B, C, or D) within a property type within a submarket. So, in most cases, it’s not adequate to simply state that the industrial market is increasing, or the office market is decreasing. Office demand could be increasing in a suburban submarket and decreasing in an urban submarket, for instance. National trends rarely perfectly reflect what is happening in a given submarket, so it’s important to be critical of the information we consume and apply to the markets we serve.
Why is it important to know where we’re at in the real estate market cycle? As appraisers, our job primarily includes market analysis
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