Over the past year, we’ve experienced a fresh transition in the economy from inflation to recession. The economic intricacies of the market are difficult to predict and navigate. The real estate market, too, moves in cycles that are directly linked to the economy at large.

The real estate cycle is a predictable and valuable indicator of current risks and opportunities for real estate investors. The real estate market moves in four different phases in the cycle before repeating. It’s important to note that every stage comes with its own unique risks and opportunities. A savvy investor can succeed in any season of the cycle. 

When the housing slowdown hit towards the end of the year, many began to worry about the prospect of another housing bust.

With the real estate market going so remarkably well over the past several years, particularly with so many “hot” markets growing in seemingly unstoppable ways, there began to worry that this growth was unsustainable. With a slowdown now in full force, some wondered...is this finally the tipping point?

While there are many factors to pay attention to as an investor of any kind, one of the biggest indicators that people seem to look to, no matter what is the market cycle. For real estate investors, the real estate cycle can be valuable to understand, but it can create a lot of stress and anxiety if relied on too heavily for decision-making.

Memphis real estate investors continue to get good news from independent analysts on the near future for Memphis investment properties.

Clear Capital recently released its' Home Value Index report for 2011 with data on major real estate markets around the country and their chief economists updated predictions for those markets.  As has been the case in the past, there are pockets of the country that seem almost unaffected by the housing crisis and other parts of the country that may never recover.  Memphis appears to be somewhere in the middle as economists are predicting Memphis Real Estate to appreciate 3.2% in the coming year.  That may not seem like a big boost, but Memphis is one of only four markets expected to appreciate in the coming year.