Real estate markets fall into three types: linear, cyclical, and hybrid. Cyclical markets like the U.S. West Coast, South Florida, and trophy cities such as London and Dubai see dramatic price swings that attract heavy investor attention.
There are three basic types of markets in the country and in the entire world and they are linear markets, cyclical markets and hybrid markets. And what do I mean by these three types of markets? The most common market people think about is the cyclical market. These are the markets that get all the attention. And if you looked at a price chart of those markets over time, you would see that it looks like a roller coaster. It has glorious highs. It has really ugly lows, then highs again, peaks, valleys all along the way. These are the markets that get most of the attention. So what are are the cyclical markets? There are places like the west coast of the United States, the expensive northeastern market, South Florida, where I am now. So those are cyclical markets around the world. Cyclical markets are all the trophy cities. They're Paris, London, Dubai, Hong Kong. Right? These are all cyclical markets.
