When to stop buying in a down turning market.

[Brian Langstrom]

We all know the cost of buying properties is at an all time high. Historic prices. But many have continued to buy with hopes of continued growth. I am seeing a flattening on demand for Condos and Townhomes. Big discounts to the inflated prices are popping up. Single Family is holding steady for now. But interest rates will soon start bringing reality back.

Has anyone started looking to sell before the drop? A neighbor who owns 7 duplexes and 4 singles has put all of his portfolio on the market. He stands to make $100K per property with less than 2 years ownership. His thought is to sell now, hold the equity and profit for 10 months and then reinvest in something much grander and in nicer neighborhoods. I am tempted myself. If you can turn a 75% or more return in less than a year, sell it and then be prepared to re-invest when the market falls. Likely in 12 months. 

Thoughts?