Seems every media commentator is jumping on a bandwagon of “doom and gloom” for the housing market. Yet only a few months ago they were calling for cooling to the price rises. I thought a little bit of perspective is due.
Buying and selling on the same market has always been sound advice
Many who tried to upgrade their house last year missed out due to a host of other offers being presented and they had yet to put their own place on the market, let alone sell. That was then. This is now – and in a good sort of way.
Locally we are seeing sale prices trending 5-10% lower than last years peak
While not such good news if you bought in at the peak, real estate for most folk is about where you live first and investment often second. And remember in the long run real estate consistently outperforms many other investment options, so don’t get too despondent – time fixes most things
You might have felt frustrated at missing out so many times last year, and maybe even given up on the dream of an upgrade. The good news is 2022 is presenting plenty of opportunities for people to buy and sell at your own pace. “Multiple offers” are nearly a thing of the past and we are now seeing Vendors considering offers conditional to the sale of another property. And with the changing market there is an increasing range of properties to consider.
The following graph illustrates a scenario of a house being sold for $600,000 and the one being purchased at $900,000 last year. Fast forward to 2022 and let’s apply a 10% reduction to both the sale and the purchase. The 2021 gap required for a replacement of $300,000 reduces to $270,000. Sure you may have missed out selling at a higher price last year, but this gap still works in your favour
The above is a “desktop” example only. In the real world of real estate the actual gap will no doubt vary.
If you are thinking of upgrading your home, come in for a chat and explore the possibilities. You may be surprised what you can achieve. We’d love to help you on the journey.
Licensed Salesperson, Rural and Lifestyle Sales, Feilding