Vegas Real Estate: A “Catch On” Market
In a recent study conducted for First American Real Estate Solution by Dr. Christopher Cagan, the company’s Research and Analytics Director, he classified Las Vegas as a “catch on” type real estate market.
According to his definition, "Catch on" markets are those that are traditionally in slow but steady growth but have experienced strong fluctuations (increase or decrease) in prices, contrary to their long-term character.
In addition to Catch On, he also enumerated other types of Real Estate Markets such as Linear, a type of Real Estate Market which is the “history” of Catch On Markets. It is characterized by a slow but steady economic growth. Cyclic Real Estate Markets operates in extremes. This type of market often experiences either of the three: growth spurts or sudden decline, and even flat, no-sales periods. Hybrid markets are those that possess the combination of Linear and Cyclic--- slower steady growth and faster cyclic periods.
The research does not offer an investment conclusion since each of the four categories has their fair share of pros and cons, and all have proven to work well and sustain in specific areas for buyers and sellers. However, Mr. Cagan recommended settling for the one that doesn’t leave us empty-handed and instead for something that breathes affordability, job availability and stable economic growth.
Based on the given types of markets, the best one that falls into the Cagan’s discursion is the conventional but steady Linear Market. Though this type of market is conventional and safe, so it assures us of a stable and consistent economic growth. It also helps us avoid sudden downfalls, an effect that is commonly the result of the more adventurous Cyclic Markets. In the Real Estate Industry, the condition of the economy is a very great determinant of business growth. So, if we make use of a Real Estate market that guarantees a constant growth, then in a way, we will be working hand in hand with the economy towards the attainment of both our individual and common goals.
According to his definition, "Catch on" markets are those that are traditionally in slow but steady growth but have experienced strong fluctuations (increase or decrease) in prices, contrary to their long-term character.
In addition to Catch On, he also enumerated other types of Real Estate Markets such as Linear, a type of Real Estate Market which is the “history” of Catch On Markets. It is characterized by a slow but steady economic growth. Cyclic Real Estate Markets operates in extremes. This type of market often experiences either of the three: growth spurts or sudden decline, and even flat, no-sales periods. Hybrid markets are those that possess the combination of Linear and Cyclic--- slower steady growth and faster cyclic periods.
The research does not offer an investment conclusion since each of the four categories has their fair share of pros and cons, and all have proven to work well and sustain in specific areas for buyers and sellers. However, Mr. Cagan recommended settling for the one that doesn’t leave us empty-handed and instead for something that breathes affordability, job availability and stable economic growth.
Based on the given types of markets, the best one that falls into the Cagan’s discursion is the conventional but steady Linear Market. Though this type of market is conventional and safe, so it assures us of a stable and consistent economic growth. It also helps us avoid sudden downfalls, an effect that is commonly the result of the more adventurous Cyclic Markets. In the Real Estate Industry, the condition of the economy is a very great determinant of business growth. So, if we make use of a Real Estate market that guarantees a constant growth, then in a way, we will be working hand in hand with the economy towards the attainment of both our individual and common goals.
posted by realestatevegas | 5:10 AM
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