As prices fall, timing moves in house market difficult for both buyers and sellers
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- 12 Apr 2023
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Entering the real estate market at the right time is presently difficult for both buyers and sellers, says Joona Widgrén, an economist at OP Financial Group.
Widgrén pointed out in a blog published last week that falling house prices may encourage many to postpone their purchase decision in hope that the prices continue to fall, a decision that may or may not pay off.
“It’s of course possible that the buyer enters the market at just the right time and finds the house of their dreams at a low price. It is at least just as possible that as you wait for the right time you notice that you are watching house prices rebound,” he wrote.
The decline in house prices will, on the one hand, likely encourage many potential buyers to enter the market and, on the other, convince potential sellers to wait for a rebound before listing their property. The outcome could be a decrease in the number of transactions.
Timing the market entry can feel particularly difficult if the buyer is hoping to simultaneously offload their old house: if the price of the house they are monitoring is falling, the same is likely to apply to their old house.
Widgrén estimated that the situation is advantageous particularly for people who are buying their first house and people who are looking to upgrade to one with more floor space. Investors who for one reason or another have to divest without delay are contrastively at a disadvantage. Read More…
