It amazes us how many times the NZ media reports on housing bubbles, crashes or downturns.
There are some salient points made in a recent Herald article but it fails mainly to consider the number one factor that influences a property market and that is human emotion. There is only one mention of ‘confidence’ in the entire article.
In our opinion, human emotion drives decision making – it’s often instinctive and tends to be built up by day-to-day events, thoughts or items we encounter.
This is one of the main reasons we are experiencing a dip in the market.
The media have been aggressively touting property bubbles etc… for the last 18 months and people are buying into it.
It was always bound to have an impact on buyer decision making.
We are starting to see this more and more as Auckland’s market starts to cool.
The reality is, due mainly to human emotion, markets always fluctuate. This applies not just to the housing market either. We see it in the stock market, commodity market etc…
What can we do to counter-attack this?
- Clever developing – avoid buying at the upper-end of any market and think outside the square
- Offer a product that appeals to the buyer audience
- Hold on to stock and wait it out
- Develop rental products as people always need housing
Smart thinking can create opportunities in any market.
Read the NZ Herald article here: https://www.nzherald.co.nz/business/news/article.cfm…