Real estate markets are cyclical, meaning they go through regular cycles of ups and downs. These cycles can have a significant impact on appraisers, affecting everything from work volume to income stability. Understanding the stages of these cycles can help appraisers stay confident, plan strategically, and navigate the inevitable highs and lows.

The typical cycle begins with recovery, where the market begins to rise after a downturn. This is followed by expansion, which sees growth and increased demand. Eventually, the market may hit hyper-supply, where there is more supply than demand, followed by a recession, where the market slows down. While a recession can feel tough, it’s important to remember that it doesn’t last forever—typically, these cycles last between 10 to 18 months.

While being in a down cycle can feel discouraging, appraisers who understand market trends can adjust and prepare for the recovery. Knowing that the market will eventually move back into the growth phase allows appraisers to stay grounded. In fact, recovery, though sometimes lengthy, offers opportunities to gain traction again and increase volume as demand picks up.

In challenging times, it’s vital to keep focused on adapting to these cycles, whether that means adjusting your approach or finding ways to diversify. Real estate markets may be cyclical, but with the right strategy and mindset, appraisers can weather the storm and come out stronger on the other side.

Check out The Appraiser Coach Podcast for more info on this topic:

856 The Cycles of Real Estate and Their Impact on Appraisal    VIDEO    AUDIO