"It was the best of times, it was the worst of times.........."
Category Blog
This part, of one of the most famous opening lines in English literature (Charles Dickens's "A Tale of Two Cities"), may just as well have been written to describe the times we find ourselves in. It could also describe the state of the current residential property market. Buyers may look back in years to come to marvel at their perfect timing. Surprisingly March has, up until the lockdown, been lively with far more homes sold than we expected. At Ennik Estates it has been one of our better months with two of our agents achieving five sales each.
The cloud of uncertainty that has long been overhanging market sentiment has now been darkened not only by the onslaught of the corona-virus outbreak but also by the long-threatened and widely expected, Moody's Investor Service downgrade of our economy to 'junk' status.
Superimposed on that has been the nationwide, round-the-clock, Covid-19 lockdown. We have all been so busy in our own self-centred lives that this lockdown has taught us not only to appreciate our homes, and those who live in them, but also to be more aware of the plight of the country's homeless and those living in sub-par crowded environments. Alexander comes to mind.
In fact, the whole phenomenon could be good for humanity and the planet - and it should trigger the charity within us and a focus on healthier living. It will also teach us many lessons before it moves off. Time and time again, the residential property market has displayed an almost obstinate ability to bounce back from "the worst of times". Why? Because everybody needs a roof over their head - irrespective of whether it is owned or rented. And upheaval in life (whether The Financial Crisis or Corona Virus) causes changes in living standards...some upgrading and others downgrading
The post-corona-virus era will be no different - not least because the banks (including those now downgraded by Moody's) have lately been anything but tight-fisted about granting bonds to home buyers. This is an important indicator, because it confirms that they are seeing value in residential property transactions.
The fact remains that the homes market has a history of remaining afloat in stormy seas of sentiment. In years to come, home buyers who transacted in this time frame will look back with a sense of pride and comfort at the courage they showed and on their excellent timing.
Warren Buffet "Be fearful when others are greedy and greedy when others are fearful"
Seldom in the last couple of decades has there been a better time to buy residential property. People making lifestyle and investment decisions in these times, could upon reflection, regard them as the best decisions they've made in their lives.
Author: Ronald Ennik
