Slipping Melbourne clearance rate trend tipped to continue
People are funny creatures. If others are buying, we want to buy too (read Bitcoin) but if prices slow down or stop, well maybe we should wait as well. We fear missing out but also, maybe, just maybe, others know something we don’t…
Guess what? Generally they don’t. But the herd mentality rules. As the Melbourne market starts to slow, some will hesitate to buy, even though they’ve been trying to break into the market for sometimes years. If the prices stall or even possibly slip back, well we’d better wait to see if they fall further. This can be a serious mistake. If the opportunity presents itself to buy what you’ve hoped to be able to and it becomes available, snap it up. And when somebody tells you that this is agents talk and that prices will fall 40% or some other silly amount that gets peddled out each year, quietly consider their personal wealth.
Whilst referring primarily to the stock market, the famous quote from Warren Buffett is valid for any asset; “Be fearful when others are greedy and greedy when others are fearful”. Whilst property is not remotely in the territory of fearful, don’t miss opportunity when it presents itself.