I guarantee it’s coming, soon, eventually, in your lifetime…
Does it matter? Sure it matters. A real estate boom is the equivalent of rolling snake eyes in a dice game. 1/36 chance. An outside probability.
So who benefits from a real estate boom?
Actually it’s not a huge segment of the population. Sure owner occupiers have a higher paper value so they can buy more flat screen TV’s on hock
(bad idea)
against their newly appraised home value . Certainly down-sizers benefit the most. Reaping the windfall of the difference between their larger more expensive home and their newer, cheaper more compact residence. And importantly, investment property owners benefit. Their risking of hard earned capital, to cash flow a portfolio of properties, can be significantly rewarded.
So we’ve had the boom and now we see the last squealing breaths of air escape the speculative real estate balloon. Which is great news. Yes really.
A boom just widens the gap between the ‘haves’ and the ‘have nots’.
As the market sucks long and hard for air, the vast majority of potential home owners in Western Australia can take stock, re-assess and set their goals without the goal posts continually moving away from them!
Buyers can buy what they want. And they should. It’s a good time to buy a home. A place to weather out the storm. To bring up kids. To paint the walls and hang pictures . Plant a tree. A place to lay your head.
With the speculative money gone, suddenly Sellers are having to wake up and sniff the smelling salts. It’s a pungent, heady aroma and it reeks of real estate reality.
For those Sellers prepared to do the work and present their homes for sale and address the market as it is, there are Buyers lining up. Yep even in this market, deals are done and homes are sold. Evidenced by the sales results week in week out.
If you are a Seller the take home message is that there are Buyers. But they want value. Give it to them and you’ll be in the sales stats for the week. The other option is not selling at all.
Derek Baston
