SFH Real Estate Market in the Northwest 2014Q1: Sellers Market - Phase 2

This is you public service announcement that here in the Northwest USA SFHs have officially entered Sellers Market - Phase 2.  (See graph below, yes I'm calling the top 2018)  The 8-12 year Real Estate cycle is separated into 4 cycles based on a variety of factors which include a variety of factors in the economy.  Sellers Market Phase 2 is a period where the price to rent ratio has gone over the steady state or in other words things have become over valued.  From an investor stand point properties it is almost impossible to make money and cashflow positively after typical expenses.  Yes there still tricks such as finding pocket deals, financing tricks (owner occupied financing), and finding that magic property that can increase your margins but for the most part the ship has sailed.

Strategies to employ in this market:
1) Stop buying until Buyer Market Stage 1 & 2 for Buy and Hold
     a) Pay off mortgages and dept
     b) Save your Opportunity Fund
2) Fix and Flips will work however need to be executed quickly to avoid the impending bubble burst
3) For those investors find other emerging markets outside SFH real estate or some hobbies because your going to have to just wait it out, like a bear hibernating in the winter.