When it comes to real estate timing you need to do it with real estate market statistics that are actually useful. Unfortunately most market statistics published by the media have pretty much no value at all in regards to real estate timing. The result is that the average real estate investor has no way to time their real estate investing.
At REMarketStats we use a moving average to calculate our market statistics to account for seasonal and other types of variations that can crop up in real estate statistics. Then from that moving average we calculate the market momentum. This is what actually allows you to look at the real estate trends and practice real estate timing.
Let me give you a comparison. If you were to just look at some published statistics for a real estate market you are interested in, for example - existing home sales, all you would be able to do is a direct comparison from one month to another. This month versus last month, would be one way to compare. You can see whether sales are up or down from this month over last month. But what good is that really? Pretty much none. That information doesn't give you any indication of real estate trends or whether home prices are likely to be going up or down. You need market statistics that are actually useful so you can do real estate timing and actually make money in real estate.
Here is an article that talks about the moving average calculation and why most real estate market statistics are useless.
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