Michael,

As you know, sales activity is one of the key leading indicators that predict real estate trends.

After a market has risen to the point where it is now overvalued, reality will eventually set in and the number of buyers (ie. sales activity) will start to decline.

As Warren Buffet says: "Be greedy when everyone is fearful, and be fearful when everyone is greedy."

Buying extreme pessimism and selling extreme optimism is the most reliable formula for making higher returns in any market - including real estate.

Best wishes,

Robert Campbell


How to read the market's signs of a possible real estate crash