Real Estate and the Golden Cross, or cross over

A Golden Cross in stock market investing is a tried and true way to identify investment opportunity.  The occurrence of a Golden Cross for a stock is thought to be a strong signal to buy.  Definition of ‘Golden Cross’ regarding the stock market:

A crossover involving a stock’s short-term moving average (such as 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.

In the Real Estate Market, just as in a Stock Market, there is also a signal that is known as a cross over (Golden Cross).  It is defined as the period in a local market cycle when it becomes more expensive to pay monthly rent than it does to make monthly mortgage payments.

This positive signal is now occurring in numerous cities that have endured hard hit housing markets.  It is a very positive sign on macro scale that foretells continued improvement to the Real Estate market.

Patrick Murphy 250 486 2529

Broker Owner RE/MAX Orchard Country

Summerland BC

@pmurphy88

PS For first time buyers, who most often are notorious for rent paying and equity building for investors, here is some good news on how to action this cycling cross over:

http://www.vancouversun.com/business/First+time+buyers+have+options+that+important+down+payment/6419013/story.html

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