Should you delay trying to sell your property when the housing market is changing?
But should we be concerned about the housing market changes if the media reports are simply there to fill in a slow news day?
The British media like nothing more than to discuss the housing market. If there is no other news that day, you can almost guarantee there will be a report of how prices have gone up or down. In Britain, we talk about the weather and house prices to a nearly comical level, and the media know that this will surely get good viewership.
But should we be concerned about the housing market changes if the media reports are simply there to fill in a slow news day?
If prices are increasing, should you wait until they peak before trying to sell your home? Or should you hurry and sell before they drop too low if they are decreasing? Or decide not to move at all until the prices rise again?
Ultimately, the housing market is never static. It is ever-changing and affected by so many variants that it is almost impossible to predict accurately. The economy, the value of the pound, the government, and legislation. Job security, the mortgage market, supply and demand. Transport links, catchment areas, amenities, investment. Available cash for equity and deposits, inflation. The list of things that can affect the housing market is seemingly endless.
And whilst you may not be worried about saving up for a deposit to buy a property, first-time buyers in the market will be. It is those first-time buyers who prop up the market as a whole. They are usually the start of a property chain that leads to sales at the top end of the market.
The inability to predict the housing market accurately means that, in reality, we don't know when we have reached the peak until prices start to drop again. And we don't know whether we are at the lowest low until prices begin to rise.
If you are thinking about selling your home, this decision will be an emotional one, not a logical one. Whether you need more space or a change of location, you are moving because of the impact the move will have on your life, not your bank balance. And so, if the decision is emotional and not logical, should you be worrying about logical issues such as the economy?
Consider for a second that the housing market is a national issue, affecting all homeowners nationwide. So, if you are selling your home today, any home you decide to buy will also be selling in the same market conditions. You can only come unstuck if you sell in one market and then choose not to buy for a year or more, meaning that the conditions you subsequently buy in will be completely different.
Of course, if you sell at the peak and buy when prices are lower, you will have played the game successfully, but the lack of predictability means it will primarily come down to luck rather than good judgement.
And again, we come back to the fact that the decision to sell a property is not logical; it is emotional. When you decide it is the right time to move, that is not based on the market; it is based on you and your family and the property you're living in no longer working for you. The rising or decreasing values will not change that fact. You will not think, "Oh well, my house will do for now because the market is a little down". You may stay in the house for a long time after deciding it is no longer fit for purpose but because of your family logistics, not the housing market.
In the recession of 2008, homes were still sold. People still moved, even though the market conditions were worse than anyone had ever seen since records began.
Market conditions are all relative. If you buy and sell in the same market, then the percentage of increase, or indeed decrease, will be the same for you and your property and every other property on the market at the same time.
Don't let doom and gloom media reports sway you from moving home. The market changes constantly, and you can never know precisely how it will go. No one accurately predicted a rise of over 20% post-covid; all analysts said instead that the drop in value would be over 30%! But, as long as you are buying and selling simultaneously, there is no need to worry.
If you are considering selling your home and want to know how much it is worth, contact our property experts or click this link.
