Markets go up and come down…and life goes on!
As an agent, one of the most common questions I get asked pretty much daily is – “So when’s the best time to sell?”
Whether or not owners decide to sell, either way, if you own real estate then facts are you’re still passively participating in a declining market.
So in light of the currently evolving market, the real question home owners need to consider is how long are they prepared to put their plans on hold for?
The one constant in the eternal ebb and flow of property market movements is TIME.
This is important because by shining a lens on time it reveals that perhaps the real opportunity cost to home owners choosing to sit out of a declining market brings with it considerations and trade-offs that could be more detrimental to their long term life goals and objectives than adjusting to the new market value of their home.
Life happens. Needs, wants, family and personal priorities change.
Yet human nature is a wondrous thing. When the market was until recently firing on all cylinders there was a genuine fear amongst some owners that they may be selling too soon, that the market had not reached it’s peak or that they may not be able to buy back into the market if they did sell. On the flip side, as the market has fairly abruptly turned since the early months of this year many owners now feel its not a good time since the market is obviously transitioning down from the historic dizzying heights it had scaled. Now granted, these are all important considerations and even more so in light of what was happening in the midst of a Covid environment. Nonetheless, over my career this is the third property cycle I’ve lived and worked through. So it really does beg the question…when is it the right time to sell?
The best way I can illustrate this is by sharing some of the genuine considerations I’ve encountered over the course of my career with many of my vendors. Briefly, some of the relevant questions they’ve raised are:
- How long do I wait before I can just downsize and enjoy my retirement whilst my health still allows it?
- How long do I wait before I upsize into a larger home whilst the family is still at a stage that a bigger home makes sense and we can all enjoy it?
- How long till I make that lifestyle move I’ve been waiting for before the kids have reached an age where they become more independent, make formative relationships and not necessarily want to entertain moving?
Whilst there’s a direct correlation between timing and market price, unfortunately there is no correlation between market price and personal priorities.
As the old adage goes – “Time stands still for no one”.
A market that’s being repriced could in fact for many owners be the wake up call to revisit their priorities and what’s really important to them.
So when’s the best time to sell you ask?? Well that depends on you….
* This information is general in nature and not intended to be financial advice.
* Reach out to myself or my team at Meridien Realty for the best real estate assistance and expert advice on what’s happening in your local market. Whether you’re looking for a top selling agent or professional property managers to rent your property you can rest assured we’ve got you covered with the best advice.