A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
The Real Estate Industry
As I move forward in my continued education, The next section is talking about the industry of Real Estate. As all of us know who have been following Real Estate for years, this is an industry that moves the econony. A strong Real Estate market creates an enormouse amount of wealth, and home owners feel much better about their finacial well being when their home is worth more money.
Many
economists think that real estate cycles mirror the economy; others think they
drive the economy. Cycles are periodic, irregular up and down
movements of economic activity that take place over a period of 2 to 6
years. Real estate markets are cyclical due to the relationship between
demand and supply for particular types of property.
There
are national real estate cycles, city and neighborhood market cycles, and
cycles for individual property types within a city.
Real estate cycles
exist in both the residential and commercial property markets and their
submarkets. In addition, each market and submarket is impacted by
different economic, financial, and demographic factors. People want to
know where the real estate market is heading, which submarket is hot, which
submarket is losing market share, and where new supply will appear over the
next few years.
The real estate cycle, just
like the business cycle, has two phases and two turning points. The two
phases are expansion (recovery or boom) and contraction (recession or
bust). The two turning points are peaks and troughs. An expansion
is an increase in the pace of economic activity. Conversely, a contraction
is a slowdown in the pace of economic activity. The peak is the
upper turning point of a business cycle, and the trough is the lower
turning point of a business cycle.
In my Business of Property
Management in Orange County California, I like to show graphs to clients who
are interested in the ups and downs of the Real Estate market through the
years.
A.D. Cantelmo Property
Management Specializes in
Property Management in Orange County Ca