An economic catastrophe is upon us all.
At least, that’s what you’d believe if you’ve bought into the recent ‘Bricks and Slaughter’ media circus brought on by 60 Minutes and other alarmist reports. With ‘slump’, ‘plunge’ and ‘set to crash’ dominating news headlines, it’s any wonder that doubt-stricken families are contemplating putting their property dreams on hold.
But for any good reason?
CoreLogic released a statement in response to the 60 Minutes report as ‘a presentation of the worst case scenario, with no regard for the likely outcome’ (21.09.18) – and we couldn’t agree more.
So here’s the facts: Property prices are simply re-adjusting following steady increases, with a 5-15% drop in Sydney suburbs – and there will always be attempts to predict the outcome. According to CoreLogic data, even in markets where prices have fallen consistently for more than four years, values have still not fallen anywhere near 40% (21.09.18). It’s certainly not the first time a market correction has occurred, and it won’t be the last.
What you need to know: there is plenty of opportunity to secure the perfect deal by selling your property. After all, there will always be people needing to buy (and move, and resell, and invest). And so the cycle continues.
As Scott Pape says, in any market, focus on what you can control; your savings, and when you’re ready to buy (24.09.18). And we will add to that, only buy what you can afford, and leave yourself ‘wriggle room’ for when interest rates do change.
Would you stop driving altogether to avoid a car crash?
Or rather, would you just drive with caution? The same can be said for selling your home. Be aware of the current market, but don’t let ‘scare tactics’ deter you from stepping into it. Because one of the strongest influences on property prices is marketplace perception, with buyers, sellers and investors too afraid to act on their goals – without any good reason.