The Property Cycle (9 Years)

Mueller (1995) defines the relationships between the physical attributes (occupancy, construction, etc.) and the financial market cycle. Mueller and Laposa (1995) analyze thirty-one metropolitan office markets that go through data rivulet from 1967 to 1993, concluding that there are four groups of cities with varying cycle duration and amplitude, but with the most common cycle length running 7.25 to 8 years. Most cycle studies focus on cycles of this length, in general because of data availability, and because the ability to accurately forecast such cycles brook lead to optimum holding purchase and sale timing. As demand fpr shoes increases, and rent starting to rise,the financial reach has increase as well. Then at this time, property knowledge is a good business to move in. everyone start constructing and over time this leads to an oversupply of property which causes slump in property cycle to happen. Putting a timeframe to these cycles is not easy. Lets waste a look at the following graphical record which shows the annual addition of the property market as good example for each year. A number of peaks can be seen in property increase followed by years of lesser growth and occasional years of negative growth (1983 and 1991.

) Property growth peaked in other words we had property booms in the following years: 1981; 1987; 1994; 2003 As you can see cycles have generally lasted about seven to nine years. That is, property booms would breathe about every seven to nine years. But these cycles do not exist because a number of years have passed. They occur because of a combination of factors and influences such as the defer of the economy, social and political issues. Looking at the graph below, it shows that over time property prices increase (green line) and in good locations property values double every 7 to 10 years. At some stages of the cycle property values increase and they go on flat or decrease at other multiplication during the property cycle, but ultimately they have a... If you want to explicate a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .