I am sure most of you have heard real estate sales happen in cycles. Here is a short article that just reinforces what most of you believe but have not seen yet.
A History Lesson on Real Estate Cycles 
About every ten to twelve years, as an average, real estate values tend to double in most major metropolitan areas. For example, in the 1920's, the original colonial homes sold for just under $2,500 in Long Island, New York. Since then, real estate prices have doubled almost eight times over the last 80 years. That averages out to a 100% increase approximately every ten years. An interesting note to this is that about every ten to twelve years, real estate values must correct before they enter their next "doubling cycle".
It's Not a Matter of If, It's a Matter of When
The evolutionary process is three steps forward and one step backwards. For example, imagine a 100% increase occurring in three steps of one-third parts each. The last market cycle of the 1980's was one in which real estate values doubled, followed by a correction of the early 1990's, which equated to a 20-30% decrease over a three to five year period. This cycle was then followed by the post-millennium cycle boom of 100% from the last high point of the previous cycle. We are now in the naturally-occurring phase of a correction in the cycle. This essential and beneficial adjustment gives the market pause to reflect and re-gather momentum and strength for the next doubling cycle. This has occurred time and time again because the long-term demand for housing is growing an exponential rate based on population growth to almost double in the United States by 2050. This will continue to drive prices higher as it has for the last 100 years.
Since we now know based on history that nearly all real estate prices will double again, it's not a matter of if, it's a matter of when your existing houses will sell. Sharing these facts with your prospective buyers will put them in the right frame of mind to buy now versus next year if they plan on staying in the home more than five years. If a buyer is apprehensive about being the right time to invest, ask him if he'd like to buy his parent's home for the price they paid for it - the answer will be obviously "yes".
Charlotte and the Lake Norman area area already beginning to see a lot more activity. I believe this spring and summer we will start to get back on tract and ease people minds about our economic recovery.
