Many people want to know whether now is a good time to buy or sell. But, in reality, the answer often has very little to do with the wider market.
Personal circumstances drive the decision. Whatever is happening to house prices, mortgage rates, or buyer demand, you simply need to move. Or it may just make sense for you and your family, or from an investment perspective. Are you having a baby, getting divorced, dealing with debt, or have you lost someone dear to you? If so, you may not have much choice. You may need to buy or sell, whatever the market is doing.
And hard though it may be, over a lifetime of buying and selling property, it is likely that you may not make money from at least one property during your lifetime. Sometimes, moving home is the right thing to do, even if it means renting for a while between owning properties. It can help you move on with your life, reduce stress, and deal with the personal reasons behind needing a different roof over your head.
Related: Florida’s Roofing Resilience: Weathering the Storms
For those who bought before 2005, there may be substantial equity in the home. These gains are typically tax-free, as long as the property has been your only or main residence. Releasing capital from your home can help support your pension or help children onto the ladder. But it is vital to make sure you can genuinely spare the money and will not need it later in life.
Timing the market versus the ladder
For first-time buyers, getting on the ladder is a big decision. Many worry about buying now and then seeing the market fall. That is understandable. Nobody wants to buy and then feel they have overpaid. But if you are trading up, market falls do not always matter as much. Once you are already on the ladder, if the market drops, you may sell for less — but you may also buy for less.
And this can work in your favour. If you lose 10% on the home you sell, you might sell for £200,000 instead of £220,000. But if the property you want to buy has also fallen, you may be able to buy a £330,000 home for £300,000. So, while you have “lost” £20,000 on your sale, you may spend £30,000 less on your purchase. This offset means the financial hit of a falling market is often smaller for those trading up than for those trying to enter the market for the first time.
Related: The Sparkling Revolution: Lab Grown Diamonds in Askern
Buying when prices are falling
For investors, a falling market can sometimes create better opportunities than a rising one. Investors can buy successfully in falling markets when they are able to move quickly, often with cash, and understand the risks they are taking. This can include properties where the property needs a lot of work, there is a subsidence issue that can be fixed, or the property can be improved or reconfigured.
According to Richard Donnell from Zoopla, “Almost a third of homes listed since Q2 are still on the market without a price reduction.” So these properties are likely to continue to struggle to sell unless the price is reviewed. However, there are still areas and properties being snapped up within days of coming to market because they are unique, well-priced, or highly desirable. This shows that while headlines focus on averages, specific deals can still appear.
The decision depends on whether you are moving because life has changed or financially able to cope if the market moves against you. If you can afford to buy, have a clear reason for doing so, and understand the risks, then “the market” may not be the deciding factor. For investors, the same applies. If the deal works, the numbers stack up, and you can hold for the long term, buying now may still make sense. What’s your view – is now a good time to buy or sell? The answer will be different for everyone. For some, waiting may be sensible. For others, moving now could be the right decision — not because the market says so, but because life does.