It pays to keep an open mind if you’re considering whether to enter the property market to upgrade your home, downsize or make your first purchase.
Fluctuating property values and mortgage costs can make real estate a challenging market to interpret for some buyers.
Media reports of exceptional growth in certain cities should always be balanced by more modest results in other areas. It’s important to remember that property markets can vary significantly from one location to another.
It’s essential to be accurate with your research and the data you apply. Focus only on results in your target neighborhood and filter them with the size and style of the relevant property. Even then, you’ll only achieve an approximation of value.
The best approach is to seek an agent’s appraisal of value and their reading on the neighborhood real estate scene.
The ultimate factor in deciding whether to buy or sell should be your personal circumstances. It will always be an excellent time to buy if you’re confident of long-term employment and can afford the price tag or mortgage costs associated with a purchase.
Don’t try to over-read the market, attempting to pick the moment it might peak or trough, as nobody can do that with guaranteed accuracy.
Even experts often disagree on market predictions. Some may forecast stable values, while others might predict slight increases or decreases.
When considering the real estate market, it’s helpful to look at various indicators:
- Median average prices and how they’ve changed over time
- Annual growth rates and trends
- Current mortgage rates
- Inventory levels compared to previous periods
- Average time for properties to sell
- Number of new listings compared to previous periods
Remember that these factors can vary greatly depending on location and time period. Always consult with local real estate professionals and financial advisors for the most up-to-date and relevant information for your specific situation.