Is it a buyers market or a sellers market?
So you are thinking of selling?
What is the market doing you ask?
We have Covid-19 hanging around at the moment, but in years gone by we have also had floods, earthquakes, recessions, political uncertainty – you name it.
Life does go on though.
No market is a bad market!
If you buy and sell in the same market then you should be okay.
Whatever you lose on your current home, you gain on your new purchase, or so the theory goes.
The time when you sometimes strike a problem is when you sell and then don’t get back into the market for some time and then the market moves up.
You might then find it difficult to buy in a higher market if you have not invested your funds wisely.
Remember, if you are looking at the stock market to guide you, it is NOT the economy.
It will also take months before the housing market reacts to the latest Covid-19 challenge.
The saying “there is no place like home” is perhaps not as easy to understand now.
Unemployment from Covid-19 has the potential to have a huge impact on property markets around the world.
More likely due to the fact that buyers will be cautious about making the biggest investment of their lives if they are fearful about their jobs.
But whatever the current market is, people will still buy and sell. Things might just be different of course.
Ignore the outside chatter and focus on what you can control.
Supply and demand are factors that drive a housing market.
If the demand for housing is up and the supply is low, prices will increase as buyers compete with each other to purchase.
If the supply is high and there are more houses to choose from, then prices will be lower, as less buyers compete for properties and more properties come on to compete with other properties.
There could also be many people returning to their homelands due to job losses so that is something that has to be considered too.
If they are lucky enough to be cashed up then they will compete against the buyers that are already looking.
Banks will also be watching the market carefully and perhaps will be more selective on who they loan funds to.
Maybe the lower rates that they advertise will not be the rate they eventually negotiate with you if they feel you might not be able to service the loan in years to come or if they feel that your job could be at risk?
Remember, every situation in life is temporary.
Be thankful for what you have and you will end up having more.
If you concentrate on what you don’t have you will never have enough!
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