Friday, June 9, 2023
HomeProperty InvestmentOught to we be assured or involved?

Ought to we be assured or involved?

Investor confidence was battered final 12 months with eight consecutive charge rises, however will this 12 months be any higher for our property markets?

In all the present uncertainty, it’s good to know that there are some property market indicators that time the best way ahead and assist us time these important turning factors.

To display how they work, I’ve used the analogy of a aircraft flight, the place the aeroplane is our property market, and the passengers are potential patrons and sellers.

The takeoff

Property Rate Growth

Because the aircraft prepares to take off, everybody on board is trying ahead to their vacation spot, having fun with a relaxation, and catching up on some work throughout the flight or the in-flight leisure.

Just a few optimists may even be trying ahead to the in-flight meals.

For the property market, that is when optimism is excessive – patrons and sellers are eager, with each gross sales and listings rising.

The inflight security demonstration

We’re within the air.

Uh oh!

Thanks for reminding us that issues can go fallacious.

Now we’ve to imagine the crash place, see tips on how to use oxygen masks and the place the emergency exits are.

We’re even proven tips on how to don life vests geared up with a lightweight and whistle.

It’s not comforting to know that catastrophe may strike.

That is the place the property market is correct now – everybody has pulled again, with each gross sales and listings falling as we brace for the worst, however will it happen, or will we land safely?

The crash

Sadly, just a few flights do finish in catastrophe, and this additionally typically happens in property markets when purchaser demand completely collapses.

Everybody tries to promote however nobody is shopping for. In different phrases, as gross sales drop, listings rise dramatically.

Property costs fall, and plenty of buyers are ruined.

The protected touchdown

Fortunately, just about all flights finish with a protected and pleased touchdown.



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