The state of the market depends on what you do.
by Neil Jenman (www.jenman.com.au)
The most common real estate question I get these days is: “What’s going to happen with the market?”
My common answer is: “Why do you want to know?”
Another common question is: “Will the market get better or worse?” to which my common answer is, “It depends who you are and what you want to do.”
It also depends on what you mean by “better” or by “worse”.
If you’re a buyer and the prices are falling then, surely, the market is getting better for you.
If you’re a seller and the market is falling, it’s not necessarily bad for you – especially if you intend to buy a similar property in a similar area in the same market.
If you happen to be buying a more expensive property in the same area in the same market, then it’s better for you. You might be selling for a bit lower than you may have achieved a few months ago, but you’ll be buying for a lot lower for the simple reason that the bigger the value the bigger the fall – and that means the bigger the saving for you.
So, all this talk about a good market or a bad market or a market crash or (and I love this next one) “the coming boom” is only relevant based on what each of us intends to do. More….