When homeowners hear that property prices are falling, their first reaction is often disappointment. After all, nobody wants to think their home is worth less than it was a year ago.
But here’s something many people overlook.
If you’re moving home, a falling market will work in your favour.
Yes, you might sell your property for less than you originally hoped, but the property you’re buying is also affected by the same market conditions.
And if you’re upsizing, the savings will be considerable.
Let’s say your home was worth £500,000 but has fallen by 5%, meaning you now sell for £475,000. That’s £25,000 less than you might have expected.
However, the house you’re hoping to buy was previously worth £800,000. That house has also fallen by 5%; it’s now £760,000.
You’ve lost £25,000 on your sale but saved £40,000 on your purchase. You’re £15,000 better off!
Even if you’re moving sideways into a similarly priced property, a falling market doesn’t necessarily leave you worse off, because you’re buying in the same market you’re selling in.
Of course, individual property prices don’t all move by the same percentage, and moving costs still need to be considered.
The important thing is to stop focusing solely on what your property might have been worth at the market peak.
The cost of moving from one home to another is what really matters.
At Cox & Co, we understand there’s a real opportunity for homeowners ready to make their next move and save money, not lose any.
A falling market isn’t bad news at all. It’s simply a better time to buy your next home.
Marc Cox
Cox & Co Estate Agents | Hove & Portslade
