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4.2
THE
BUSINESS CYCLE AND BUYING A HOME
Supply
and demand
When the supply
of available houses is greater than the supply of buyers, appreciation
may slow and prices may even fall, as happened in the early eighties
and the early to mid-nineties.
If you are
lucky enough to purchase a home during a slow period, you can be
reasonably certain the economy will begin to show strength again.
At times, real estate values may even surge drastically. In many
regions of the country, this is precisely what occurred in the late
eighties and nineties.
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