All the Feels
21 Oct 2020, Default Admin and Lynette McFadden
The world of real estate is not only aligned to bricks and mortar; it can also encompass a lot of human emotions. So much so that a saying I’ve often heard, that ‘emotion can defy logic’, is currently being played out in every part of the marketplace.
Last month I wrote about ‘market madness’ and the incredible sense of urgency to purchase, and, so far, that’s continuing. Now I’m told, by the media as much as my own observations, that much of this is driven by FOMO or ‘Fear of Missing Out’.
And it’s absolutely correct. Auctions and their counterpart deadline sales are being brought forward in large numbers, meaning buyers aren’t waiting for the actual auction or deadline date to make their move. They’re determined to pursue their property dreams right now! In one day last week I received notification (as we do across the entire brand to ensure we can inform any interested party) of 16 auctions or deadline sales being brought forward due to an acceptable offer being made. And, remember, if that’s for an auction, the offer is absolutely unconditional.
16! And that’s just one day. Every day there are similar numbers. On the day I wrote this article, by noon I’d received 10 more.
As a consequence, emotions are incredibly high and that includes both joy and disappointment.
Over time, I’ve seen the full range of emotions, including tears from first-home buyers with a new baby in arms and the odd raging bull yelling at the price of a property going beyond expectation and budget.
So, the questions are: what should I do and when should I do it?
And I think the easiest answer is this line from Tony Alexander, a well-known (and often quoted) economist who, despite being the most optimistic of the economists, is probably also one of the most accurate.
“Waiting for prices to drop hasn’t been a good strategy for the last three decades.” And it’s true.
Personally, I’ve tried to favour a measured approach to real estate purchases and that natural caution has seen us miss properties that would now look like jewels in any property portfolio and sell others that should not have been sold.
I’m now, at this stage of my career, realising that despite being often told ‘there’s always another property around the corner’, sometimes the good one in front of you is pretty darn good.
I don’t know how long our current market will last for, but I do know that Tony Alexander is on the mark. Waiting and waiting and waiting for prices to fall or land to get cheaper could mean waiting a very long time.
So get on the property ladder, think about investment property and, if considered advice is what you’re looking for, call me to talk. I’ve got 27 years of experience and that’s become an incredibly important asset.