Doom & Gloom? Or just ‘Normal’?
The crystal ball opinions about what property markets will do in 2023 and beyond are varied. ‘Boom’ and ‘Bust’ are words commonly thrown about in the media.
It’s understandable why homeowners can become fearful with this style of reporting. Some economists have predicted a reduction of home prices of up to 15% in 2023. Yet that number is barely half of the national increase seen during the recent boom after the onset of the pandemic.
The main thing to keep in mind is that for most people, property is purchased as a home. A place to live for many years – and therefore should be considered with long-term perspective.
If you are buying a home to live in long-term, the short-term price is less relevant. If you’re looking at property from an investment perspective, of course you’ll be more interested in keeping a keen eye on how the market is moving in the short-term. However, property investment is generally not a short-term strategy.
This anecdote rings true: “The best time to plant a tree was 20 years ago, the second-best time is today”. We all wish we’d bought more property at the prices from 20 years ago. Perhaps we’ll be saying the same thing in another 20 years!
Most buyers purchase property for stability and longevity. They want to live in their homes for years, raise a family there and maybe even retire.
Homeowners need not worry too much about a correction in housing prices. The national market always bounces back over the long-term. If they sell and buy in the same market, their change over costs are usually similar.
It’s comforting to realise, we are now entering a ‘normal’ market, which is more evenly matched for buyers and sellers. It means roughly the same amount of buyers and sellers actively in the market, rather than a flock of buyers willing to over-extend themselves to win the competition against other buyers. Properties can take longer to sell than recent times. But again, this is a more traditional scenario than the recent excitement of seeing a property list and sell in the same day.
With all the disruption and upheaval of recent times, ‘normal’ is just what we all need for a change.
– Blog article written by Melanie Littlemore
