What characterizes the beginning of a market upcycle?

The beginning of a market upcycle is characterized by the recovery of buying and selling activity, accompanied by increased prices. This phase typically follows a period of market downturn or stagnation where prices have been low and sales have decreased. As demand for properties begins to rise due to various factors such as improved economic conditions, increased consumer confidence, or favorable lending practices, buyers reenter the market.

During this recovery phase, the increase in transactions often leads to a rise in property values, setting the stage for a more robust market. This positive momentum signals to sellers and investors that it might be a good time to enter the market, further propelling the upcycle as more properties are bought and sold. In contrast, stagnation of prices and lack of sales, a decrease in property values, or an increase in rental vacancies indicate either a declining or stagnant market rather than the emergence of a new upcycle.