In the real estate market, time is also money.
13/12/2023
The property market is cooling down
Those who want to buy believe that it's better to wait. That houses will come onto the market at much lower prices than they are now. Those who want to sell also prefer to wait. Although they could get a good deal for their property, they don't believe they'll get a good alternative to buying - they want to sell high and buy low - and in a matter of days because they need a house to live in. Expectations influence buyers and sellers and when reality doesn't meet those expectations:
. decisions are postponed, . planning is wasted . and action is replaced by doubt and uncertainty
And leads to inaction.
The perception is that this way there is no risk, no error, nothing to lose. Is that ?
In the property market too, "time is money"
And value and time define the level of success of the transaction you intend to carry out: whether it's a sale or a purchase. In terms of time:Between downs and ups, cycles of market fluctuations, past and future, we must analyse the present. And at present what we have is a market with a tendency to stabilise.
In terms of value:It's true that in Portugal house prices were well below the rest of Europe and what we've seen is that in the last 10 years the value of the property asset has appreciated by around 70 per cent.But we are no longer in that market cycle and the appreciation of property assets is cooling and in some cases declining.The market has changed!In reality it has and we have to adjust our expectations of what we can do with it.
Often, putting off the decision to buy means expecting a house to fall in value by around 20%. To give you an idea, a house worth €300,000 will now be worth €240,000.
Postponing the decision to sell is expecting the house to be worth 20 per cent more than it is now - a house worth €560,000 will now be worth €700,000. And all this can happen. The question is how soon?If we were in a period of growth like we've had in the past, we'd need around 4/5 years to increase the value of a house by 20%.
But we're not in that market cycle, so how many years do you have to wait?
We can't look at the market stuck in the values of the past and afraid of the values of the future. The market is what it is in the present.
You have to make informed decisions, based on credible data, responsible and enlightened financial analyses.
But don't put off your life or the fulfilment of your dreams. Waiting will, at the very least, waste you time and money. The best time to make a good deal is NOW.
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