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Timing The Market Doesn’t Work For Stocks. Here’s Why It May Not Work For Real Estate, Either

Years ago, I had my eye on a specific tech stock I really wanted to add to my portfolio. Its price had been dropping, but I wasn’t ready to pounce. The reason? I was intent on adding it to my brokerage account only once its price had truly bottomed out.

You can probably guess how things turned out. I hesitated on buying that stock, and its price jumped back up — and I missed out on those gains.

See, what I tried to do was time the market. And I failed miserably.

Just as investors try to time the stock market, homebuyers often try to buy a house when prices are at their very lowest. But nobody can say for sure which direction home prices will go, so this can be a dangerous strategy.

This post appeared on Real Estate Research.