Style: October 30, 2020

ALL THE
FEELS
Emotion vs. Logic in the
Current Property Market
The world of real estate is not only
aligned to bricks and mortar; it
can also encompass a lot of human
emotions. So much so that a saying
I’ve often heard, that ‘emotion can
defy logic’, is currently being played
out in every part of the marketplace.
Last month I wrote about ‘market madness’
and the incredible sense of urgency to
purchase, and, so far, that’s continuing.
Now I’m told, by the media as much as
my own observations, that much of this is
driven by FOMO or ‘Fear of Missing Out’.
And it’s absolutely correct. Auctions and
their counterpart deadline sales are
being brought forward in large numbers,
meaning buyers aren’t waiting for the
actual auction or deadline date to make
their move. They’re determined to pursue
their property dreams right now! In one day
last week I received notification (as we do
across the entire brand to ensure we can
inform any interested party) of 16 auctions
or deadline sales being brought forward
due to an acceptable offer being made.
And, remember, if that’s for an auction, the
offer is absolutely unconditional.
16! And that’s just one day. Every day there
are similar numbers. On the day I wrote this
article, by noon I’d received 10 more.
As a consequence, emotions are incredibly
high and that includes both joy and
disappointment.
Over time, I’ve seen the full range of
emotions, including tears from first-home
buyers with a new baby in arms and the
odd raging bull yelling at the price of a
property going beyond expectation and
budget.
So, the questions are: what should I do and
when should I do it?
And I think the easiest answer is this
line from Tony Alexander, a well-known
(and often quoted) economist who,
despite being the most optimistic of the
economists, is probably also one of the
most accurate.
“Waiting for prices to drop hasn’t
been a good strategy for the last
three decades.”
And it’s true.
Personally, I’ve tried to favour a measured
approach to real estate purchases and
that natural caution has seen us miss
properties that would now look like jewels
in any property portfolio and sell others
that should not have been sold.
I’m now, at this stage of my career, realising
that despite being often told ‘there’s always
another property around the corner’,
sometimes the good one in front of you is
pretty darn good.
I don’t know how long our current market
will last for, but I do know that Tony
Alexander is on the mark. Waiting and
waiting and waiting for prices to fall or land
to get cheaper could mean waiting a very
long time.
So get on the property ladder, think about
investment property and, if considered
advice is what you’re looking for, call me
to talk. I’ve got 27 years of experience and
that’s become an incredibly important
asset.
Lynette McFadden
Harcourts gold Business Owner
027 432 0447
lynette.mcfadden@harcourtsgold.co.nz
CALLING
ALL
PROPERTY
INVESTORS!
THIS IS A
MUST!
Don't miss the Harcourts gold
PROPERTY
OPPORTUNITY
AUCTION
selling...
AS IS WHERE IS
PROPERTIES
INVESTMENT
PROPERTIES
FIRST
HOMES
18
NOV
4PM
471 PAPANUI RD
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