An investor who plans to sell a residential property after exactly one year is more concerned with the long-term average rate of return over a decade than with the property's price change during that specific year.
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The Economy 2.0 Macroeconomics @ CORE Econ
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Evaluating Short-Term Housing Market Fluctuations
An individual purchases a home with the intention of holding it for 20 years. In the third year of ownership, the local housing market experiences a sharp, unexpected 12% price decline. According to the principle that long holding periods can buffer against market swings, which statement best describes the situation for this homeowner?
An investor who plans to sell a residential property after exactly one year is more concerned with the long-term average rate of return over a decade than with the property's price change during that specific year.
Impact of Holding Period on Investment Risk
Investor vs. Homeowner: Perspectives on Market Volatility