More on KentOnline
More on KentOnline
Christopher Calcutt, of Calcutt Maclean Wood, takes a look at the property market going into the summer months.
In the depths of depression it is often hard to find reasons to be happy – especially in the property market. Prices dropping, nothing selling, precious few buyers – all these factors combine to deflate enthusiasm and erode confidence.
But this is all part of an established pattern. Many of us have been through these ups and downs before and are experienced enough to know these recessions are cyclical and generally follow an eight-stage format.
The first stage is optimism, the period when people get excited about buying a home. When the market is so strong property value increases quickly and this heralds the second stage – fever pitch. Sadly it is this gold rush excitement that leads people to make rash and sometimes unwise decisions and it is these that lead to a downward cycle.
At first nobody wants to believe the bubble has burst and go to stage three, denial, not believing that their own property can lose value even when all others are.
Then comes fear (four), as prices continue to slide, followed by panic (five), then stage six, resignation. Finally acceptance (seven) leads to hope (eight) – and from hope we are back to optimism. And so the property market cycle is complete.
Right now we have gone through stages one to five. We are probably now hovering between resignation and acceptance. But this is not as bad as it may sound. It is actually a good moment. When the market is at fever pitch it is a time of minimum opportunity and maximum risk. Conversely when the market is between resignation and acceptance it is the time for minimum risk and maximum opportunity.
So now is clearly a time to think very positively indeed about buying a property. This is probably one of those periods in life that many people will look back on and say, "I wish I had bought in 2009!" The strongest property market advice we can give is – don’t be one of them.
