Trying to time the market may seem like a good idea, but it can be a very risky venture. History repeats itself, and examining it can help us prepare for the future. Read Florida real estate market in 1926, a chilling account of one of the greatest market crashes in the US. More than 70 years after this crash, some South Florida properties were still selling below what the owners paid for them.

Another more recent example was in the 1990's, when Los Angeles property experienced a 20% price drop. Some people had to wait 10 years before regaining their lost property value. It is important to know the conditions of the market you are entering. Is it inflated? Is it a buyer's or seller's market? Knowing this information is helpful in determining the risk of your potential property purchase.