The terms bull and bear, normally used to describe the ups and downs in the stock and crypto market, can also refer to changes in property prices. However, these markets are not always only associated with a net decline or rise, and they also closely affect pricing in markets outside themselves. Therefore, choosing the right action to take in bear or bull markets can help you catch investment opportunities in the real estate market on time.
What is a Bull and Bear Market?
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Bear market; in its most general sense, it refers to regular declines in stock markets. A drop of more than 20% from the last high means entering a bear market; As a result of the decreases in the bull market, there is a 20% or more increase in prices. However, such successive market cycles represent long-term intervals, often coinciding with periods of several months and sometimes years. For this reason, it is important for all kinds of investors to learn to use the current conditions in their favor by making the right move rather than any inaction.
The ups and downs in stock markets often closely affect the real estate market. However, such concepts can be used not only for stock markets, but also for almost all business lines where trading is possible. Therefore, it is very important to follow the market when investing in real estate, buying new housing and deciding to expand the business.
Relationship Between Equity and Real Estate Market
It is extremely important for consultants who want to make the most accurate purchase and sale decisions in the real estate sector, to determine market trends through appropriate real estate programs. For example; A bear market, in which prices tend to fall, causes both real estate and stock investments to depreciate. However, in addition to all these, it offers a few different options to investors in the real estate field. In the bear market, which coincides with the uptrend, investors have the opportunity to earn high profits. Therefore, these types of market variables closely affect the real estate decisions to be made and offer different opportunities to investors:
- Buying Cheap
One of the best opportunities to invest in housing is to follow the bear market, where prices are moving down. Because in these periods, especially long-term investments can be made with very cheap costs. Falling prices during a bear market are extremely favorable for home ownership and investing in the future.
- Housing Renovation
A bear market is not just a concept for stocks, and it also helps to describe periods of low real estate sales. A bear market, where trading is slow, provides good opportunities to value old properties on hand. In a low-value market, budgeting for renovations can mean opening the next bull season with high-priced property sales. However, it is necessary to calculate how much profit will be brought by the expenditures made in the long run.
- Making profit
A bull market with regular price increases is the best time to cash in on old properties that were bought at a low price or refurbished. During this period, the advantage arises of selling existing investments at the desired price, but the most important issue in a bull market is the waiting time required to sell. Waiting for a long time with the belief that prices will increase even more may cause the investor to be badly affected by possible decreases or early sales may cause loss of profit.
In general, achieving sustainable growth in the real estate field depends on directing customers to the right investment tools. For this reason, it is necessary to use systems that allow not only real estate variables, but also many parameters, including stock markets, to be followed at the same time.
Many professionals who want to take advantage of the current opportunities in the real estate market work with Fizbot real estate agent software to support their customers’ investment decisions and to follow the trends in the market. Fizbot, which guarantees a better financial future with instant price alerts, ad matching and real estate CRM portal; it also helps identify the best real estate strategies.
If you want to specialize in investment strategies in the real estate market by signing up for the Fizbot digital real estate consultant program, you can contact us here!