Waiting for the market to drop? Don’t.

Recently, many people have been asking us whether they should buy a house now…or perhaps wait in case the market crashes.

Unless you’re a very numbers-driven professional investor who treats property as a hard-nosed business, I suggest this is the wrong way to look at things.

To illustrate my point, let me tell you about someone who first talked to us in 1998 about buying his first home. It didn’t happen. He got cold feet and decided to wait.

In 2013 we had the same conversation, with the same outcome. His words were, “I can’t afford to buy now.”

Today he would need a Lotto win or a very rich family member to get into the Auckland property market. After 23 years of hesitation, he’s still waiting for the perfect buying moment.

Nobody knows what will happen to house prices.

At Sue Tierney Mortgages, we don’t know when prices will rise or fall. Nobody does. There are too many factors involved – and some of them are ‘Black Swan Events.'

Looking back over the last two decades we’ve experienced 9/11, the Christchurch earthquakes, the GFC and the Covid-19 pandemic. Each took the market by surprise. Sometimes they had a positive effect, i.e. prices went up.

But when you look past the short-term ups and downs, the pattern is clear. Statistics from the Reserve Bank show that prices have risen, decade after decade.

Now this does NOT mean you’re guaranteed capital gain – remember, nobody can predict that. But it does suggest that you’re better off getting into the market rather than watching and waiting.

The right time to buy is when it’s right for you.

If you need a roof over your head, the market is not the issue.

Instead, we suggest you focus on your own needs, get your finances in order and don’t waste too much time wondering whether the market will drop. Then buy what you can afford to buy. Remember, your first house is unlikely to be your last house.

The first step is to get in touch and tell us what you want to achieve.

If you need a mortgage, or to re-fix your loan, we’re here for you.