There has been a global pandemic, one of many over the years, and though it pales in comparison to how many people were killed by Smallpox, it is still a big deal and will be remembered for years because of how most countries in the world experienced a lockdown. The lock down has dampened economies around the world because it slowed down local and global infrastructure. Now that the lockdowns are lifting, is it a good time to sell your house?
Ignore Your First Instincts
Your first instincts are going to tell you that people have less money now because many people have been off work, and the global economic slowdown has hit many people hard. The scales seem to be tilting away from selling, but in the words of the world’s greatest investors Buffet, Graham, Trump, Bogle, and Ackman, “When the market goes one way, you should go the other.” When people are buying, you should sell, when people are abandoning ship, you should get on board.
In this situation, doesn’t that sound like good advice? If most people are shying away from selling, then isn’t it the best time to sell? It means any hungry buyers are forced to come to you.
Not a Good Time, or a Bad Time
Hercules (2014), Battleship (2012), Fast & Furious 3 (2006), all three of these movies have something in common. They are not bad movies, but one would also strain to call them good. They sit in an odd type of “Okay” limbo, and the housing market is sitting in a similar state at the moment.
There are clearly people who want to sell, and clearly people who want to buy, but buying and selling takes time, and most of the world is still emerging from an economic pause. This is especially true of people in other countries who wish to buy property over here but are unable to view said properties at this time.
There Are Still People Hungry to Buy
For some people, the lock down has “Intensified” their desire to buy a house. According to industry experts, Ready Steady Sell, “there are a wide range of circumstances where people need a house now, and they have had to wait for the lockdown to end, and now are more eager to buy than ever”. Here are just a few examples:
- People needing to move to a certain school district – A time sensitive issue
- Kids growing up and needing their own bedrooms – People need bigger houses now
- People with location-based retirement plans – They are waiting to move and start their retirement
- Those with a baby on the way – Not urgent, but it turns house buying into a priority
- Need bigger garden for pets – Unexpected pets cannot live in flats and apartments comfortably
- People who were already set to buy – Deals fall through and now people are looking again
People often regard house buying as climbing yet another rung on the housing ladder, and yet in many cases people are buying houses for time-sensitive reasons. People have just lost a lot of time thanks to the lockdown, which means they are now more eager to buy.
What Are People Supposed to Do?
There is a Black Swan effect (Nassim Nicholas Taleb) going on at the moment where nobody is sure what to do because a global pandemic plus lockdown happens so rarely and infrequently to set a reasonable precedent. Should estate agents start advertising heavily? Should lenders advertise now? Is this a good time to start flipping? Should the dust be shaken off old property deals? Should people be renovating?
People in the future are going to look back at the economy and housing market now with the benefit of hindsight and everything will appear obvious, but for us right now, nobody knows what to do. If you are buying, selling, advertising or whatever, now is the time to take a risk and go ahead with your plans. There is very little to consider or weigh up because you do not know all the facts and factors affecting the situation. It is a time when a risky maneuver may pay unexpected rewards. Take the example of Captiva Homes who are set to build 475 new homes in Ryde. It is one hell of a gamble, but now is the time to take such risks.