Timing is everything - how to make the most of the 18 year property market cycle
Timing is everything when making a life-changing decision. And it can be hard to know if you have got the timing just right when trying to sell your home.
Timing is everything when making a life-changing decision. And it can be hard to know if you have got the timing just right when trying to sell your home.
As with any market, property values are changing all of the time. Prices go up and down with the supply and demand; peaks and troughs; boom and bust.
If you play your cards right, you could play the market, selling for the highest price your property has ever been able to achieve! If timed correctly, you could sell at the peak.
But, if you hold on too long, the market may change, and you could be left trying to sell your home at the bottom of a trough. This can spell disaster if the offer you receive doesn't even cover your outstanding mortgage amount. If you're in negative equity, your lender could even refuse permission to sell unless you've got savings to make up the shortfall.
Currently, the property market's experiencing seriously low demand. There are significantly fewer homes on the market for sale than usual. When demand outweighs the supply, values are pushed up. Within the last year, some areas of the UK have seen prices increase by as much as 10%. On average, there are a whopping 29 potential buyers for every property on the market (*Property Industry Eye, Dec 2021). It's no wonder the values are increasing when there is so much competition between buyers.
Economists predict that the property price rise will continue for another year or so. After that, a gentle slow down of the market is expected, although nothing like the devastating recession of 2008.
Despite a recent increase to the bank of England base rate, property stock is still at an all-time low, and prices continue to go up. Further base rate increases are predicted in the coming months to slow down the rise of property prices and the rate of inflation, which is currently at the highest levels since the early '90s.
Although there is no guarantee that these predictions are accurate, the property market has followed a regular 18-year cycle for many years.
From boom to boost, through to recovery, takes 18 years. A cycle that has repeated for decades. Each time we journey through this process, the peak surpasses those in previous cycles, and the bust phase never quite reaches the same depths as the previous one.
If we work on 2008 being the lowest point of the last market, the 18-year cycle is not set to bust again until 2026. If that theory is correct, there are 4 more years before the property market prices will reduce again.
Perhaps the very best market to sell in is right now!
No one truly knows the answer. There's no exact science. But if you have been thinking about maybe moving home in the next few years, it could be best to do so sooner rather than later to make the most of the current boom in property prices. Perhaps now is perfect timing?
Simply click this link to find out instantly what your home is worth. You might be pleasantly surprised!