The emotional toll that market fluctuations can take on investors is the true monster when it comes to an incoming decline in the market. Investing on all sides of the spectrum has definitely taken a hit during this worldwide pandemic, but this may not be as uncommon as you think.
It helps investors looking to buy both stocks, and property, to put this situation into a little perspective. The 1973-74 market declines put prices back to where they were at the beginning of 1958. The current decline caused by the coronavirus has only set us back to where we were in January 2019.
Depending on where you sit financially, this may actually be a great time to enter the market while prices are lower than normal. There are a multitude of situations in which one may be able to find a great deal on a property during times like these. A risky market will have a lower price tag. Because of the current landscape, variables swing the moods of investors. This might work in the buyer or seller’s favor depending on how they can take advantage of the market.
It also helps to realize that markets don’t stay in these decline periods for long. In fact, since 1940 the number of time markets that have declined -20% return environment has been less than 15% of the time, and less than 3% of the time for reductions of 30%.
Ultimately though, it is always important to use this time to re-evaluate our investments. While this situation will inevitably recover, risk evaluation is a great practice for anyone with any kind of investment. Where is your home located? What does the market look like in the future? Is there a better option out there somewhere.
Don’t go it blind, we can help you figure out your options!
At Griffin Realty Group we are dedicated to helping our clients through every step of their home-buying transaction. Buying a home is an investment, and we’re here to help you find one that is going to last in the market. While the market may be volatile at the moment, this may be the best time to enter the market. Do it with experts at your side.
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