Yes or No: Buy in a Buyer's Market & Sell in a Seller's Market

[Jared C.]

"Buyer's/Seller's market" defined by months of inventory.

I believe it is best to buy in a seller's market, and sell in a buyer's market.

My reasoning: months of inventory creates price pressure.  Low inventory causing upward pressure on prices, even bidding wars.  Similarly, high inventory causes motivated sellers to accept offers below appraisal and prices are pushed downward.

I live in a seller's market (Seattle) and am preparing to invest in a buyer's market (Louisiana).  Now thinking about the price pressure, I'm reconsidering that plan.  I should buy what's rising, not what's falling, right?

[Lane Kawaoka]

Dead man last words. Jk

It really does not matter if it's a buyers or sellers market. As a investor you should know what you are doing by locking in a purchase price and your Cashflow sheet. If you going for Cashflow then does it Cashflow and how much buffer do you have if the rents take a dip? If your going for appreciation and it's costing you money to hold on to the asset you would be screwed for 5-10 years waiting for the market cycle to correct.