by Sean Fergus
Have you ever asked yourself, "Are home prices over- or undervalued today?" If so, you have been comparing current prices to prices over the long-term trend, which is known as intrinsic value.
Many of the best investors in the world tout intrinsic value as the most important metric for long-term investing. Buy when prices fall below intrinsic value and don't buy when they rise above. The difficulties come in determining your opinion of intrinsic value and having the patience and courage to withstand what can sometimes be very long periods when prices are over- or undervalued.