It’s
unlikely that the real estate market will receive a huge price correction
despite certain media reports. Home buyers should continue to exercise due
caution and purchase the right property, in the right location, at a price
point that works for them.
Most home buyers are concerned about the right time
to make an investment and whether the realty market is set for a correction in
rates. The global economic market has witnessed lots of ups and downs with China
devaluing the currency. Additionally, our domestic market had been choked by
the policy paralysis which plagued many legislations in the parliament, in the
past. Home buyers and investors are hopeful that the interest rate cut of 50
bps by the RBI would revive the market sentiment in the coming days.
Are property prices heading for a
crash?
There are concerns about the realty market heading
for a crash. However, can the realty market crash in a single day, like the
stock market?
Price corrections do not happen the way most people
imagine, if they happen at all. “Many people think that property price
correct uniformly and simultaneously across locations; which is not the case.
Property price correction may take place city-wise
or in a particular city. More importantly, in locations where there is too
much stock and no sales; if sales are taking place, even at a slower rate,
prices will not drop.
Should you wait to buy a home?
Experts suggest that end-users should strike a
right deal on the basis of location and amenities. Home buyers must exercise
price negotiation when investing, but waiting for a big correction may not be
fruitful.
The current real estate sales trend, opens up a
larger window of opportunity for buyers!
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