Down>Bounce>Drag>Release>Up
When I first heart this, I thought it was something from a fishing show. As I read further, I realized just how important this concept is to real estate buyers. This describes the predicted shape of the recovery from this recession. Predicting what may happen can be a huge benefit for investors deciding when and how to get into this market if buying real estate is part of your business plan.
See the different types of potential recovery shapes at this link:
http://en.wikipedia.org/wiki/Recession_shapes
The following business week article discusses the W shaped recovery prospects that we face. I invite you to search the Internet for descriptions of the different recoveries.
http://www.businessweek.com/news/2010-03-25/ecb-s-wellink-says-global-economic-recovery-could-be-w-shaped.html
The bottom line with respect to recovery shapes is to try and time the market. The good thing regarding the W shaped recovery, it that the bottom may exist at least a couple times and even it you do not time it just right, if you wait long enough, the property will go up in value (as long as your original fundamentals are right)!
If you do not know the fundamentals of investing in real estate, STOP and do not move forward until you do.
