Market Timing is Far From Perfect!

No one wants to purchase a home only to see its value decline. But should you wait to buy a home until prices bottom out? A quick web search will yield a number of articles and opinions for and against timing the real estate market, but beware of those in favor of market timing who also want to sell you a how-to book or system.

 

Many people who have tried to time the market miss out on the chance to build equity by waiting to buy until prices rise again. The problem? Market cycles only become clear in retrospect. In the midst of a market slowdown, it’s very difficult to predict when housing prices hit their low points. What is the best way to protect against buying at the wrong time? Sell at the right time. In many cases you can’t control when to sell, but you should plan on keeping your home at least six or seven years.

 

The longer you own your home, the better chance you have of building wealth and protecting yourself from the market’s ups and downs.