The {real estate|realty|property} market is cyclical - filled with {periods|durations} of {solid|strong} {appreciation|gratitude} and {periods|durations} of {stagnation|stagnancy} or {decline|decrease}. The cycles are {generally|typically|normally|usually} long {because|since|due to the fact that} the {process|procedure} of {buying|purchasing} and {selling|offering} {real estate|realty|property} {takes time|takes some time|requires time}.

{Despite|In spite of|Regardless of} the {current|present|existing} {downturn|recession|slump|decline} in the {real estate|realty|property} market, {buying|purchasing} {a home|a house} is still {a great|a fantastic|a terrific|an excellent} {investment|financial investment}. The tax {benefits|advantages} of {deducting|subtracting} {mortgage|home loan|home mortgage} interest and {real estate taxes|property tax} {provide|offer|supply} {a great|a fantastic|a terrific|an excellent} {incentive|reward} for {home ownership|own a home}. {A recent|A current} {study|research study} {showed|revealed} that owning {a home|a house} continues to be {a solid|a strong} {way|method} to {build|develop|construct} wealth over the {long-term|long-lasting}. {Homeowners|Property owners|House owners} {almost always|often|usually|generally} get {a positive|a favorable} {return on investment|roi} within {10 years|ten years}.

Although the rates of return {vary|differ} by market, following are some {common|typical} findings:

The longer you own your {home|house}, the more your {investment|financial investment} will increase.
Your rate of return will {stabilize|support} {over time|in time|gradually|with time}, even in {volatile|unstable|unpredictable} markets.
For {a positive|a favorable} return on your {investment|financial investment}, the timing of your {home|house} purchase is {less important|lesser} than the length of time you own your {home|house} (the longer you own your {home|house}, the more {stable|steady} its return will be).
Following are {additional|extra} observations for {buying|purchasing} or {selling|offering} {a home|a house} in a cyclical {real estate|realty|property} market:

{Buy|Purchase} when {the market|the marketplace} is soft - not when {prices|costs|rates} are {rising|increasing}. In this {scenario|situation|circumstance}, you get more for your {money|cash|loan} in a less competitive environment. {The majority of|Most of} {home|house} {buyers|purchasers} tend to follow the crowd and wait {until|up until|till} it is {obvious|apparent} that {the market|the marketplace} {has|has actually} turned.
{Use|Usage} seasonality to your {advantage|benefit}. {For example|For instance}, the middle of {winter|winter season} is {a great time|a good time|a fun time} to {buy|purchase} a lake {house|home} in northern {climates|environments}. There will be {minimal|very little} {competition|competitors} and sellers that are {anxious|nervous|distressed} to {make a deal|negotiate}.
{Focus on|Concentrate on} the {local|regional} {real estate|realty|property} market. National {statistics|stats|data} {refer to|describe} {statistical|analytical} averages. {Therefore|For that reason}, it{'s important| is essential| is very important| is necessary} to {focus on|concentrate on} the {real estate|realty|property} market you are {buying|purchasing} or {selling|offering} in. {Don't|Do not} be {distracted|sidetracked} by generalized reports. While some {areas|locations} of the {country|nation} are experiencing {price|cost|rate} {increase|boost}, others {have|have actually} {turned around|reversed} with falling {inventories|stocks}. And, while some {areas|locations} have {price|cost|rate} {declines|decreases} of {a few|a couple of} {percentage|portion} points, others {are in|remain in} double digits.
{Search for|Look for} {greater|higher} {affordability|cost|price}. Lower {prices|costs|rates} {mean|imply|indicate|suggest} {houses|homes} are more {affordable|inexpensive|economical|budget-friendly|cost effective|budget friendly} and, {thus|therefore|hence}, this increases {the market|the marketplace} of {potential|prospective|possible} {buyers|purchasers} and {mitigates|reduces|alleviates} the {effect|impact|result} of tighter credit {standards|requirements}. This {also|likewise} {reduces|decreases|minimizes|lowers} the {risk|danger|threat} of {further|additional|more} {price|cost|rate} {declines|decreases}.
Conduct {research|research study} on {pricing|prices|rates} for the {current|present|existing} market. If {selling|offering} your {home|house}, {be sure|make sure|make certain} to compare the {price|cost|rate} of your {home|house} with {similar|comparable} {properties|residential or commercial properties|homes} on {the market|the marketplace} and ones that {have|have actually} been {sold|offered}. {Buyers|Purchasers} are {looking for|searching for|trying to find} {bargain|deal} {prices|costs|rates} and {won't|will not} {bother|trouble} {negotiating|working out} with {someone|somebody} they feel is asking {too much|excessive}.