What do I do if I’ve bought a new home, only to see the market value drop right after?
So the market has dropped once again and you’ve just bought a new home? It happens! Owning a home is a long game, not a short one and yes, the value of your place may drop but try not to fret! It will make its way back up at any given time. It’s understandable to be concerned but it is important to remember that real estate markets are subject to fluctuations - and there are a couple of other things to consider to help calm your worries too.
Firstly, I'd suggest not to look at the online valuations you can find when searching up on the web. Sometimes they can be inaccurate and untrue - you may have completed renovations that would bring the value up, which the online platforms will not be aware of.
Secondly, know the price you purchased the property for and put your mind at ease that it was in fact relevant to the time you purchased it. Be patient! Given the trends it is more than likely that even if your house value has dropped now, it is more than likely to make a comeback.
Make sure to stay informed and avoid panicking - keep yourself in the loop on the local trends in the market, understand that the market values can change due to various factors out of your control, such as economic conditions and supply and demand.
Avoid making hasty decisions out of panic. Market fluctuations are normal, and property values can recover over time. Think of the long-term perspective, remember that real-estate is typically a long term investment. Focus on your original reasons and goals for buying the property. Continue monitoring the market and just keep an eye out on the changing trends. Good things take time and with an investment such as this, it won’t happen overnight.
To put your mind at ease, always remember that values can go up as well as down, and short-term fluctuations are a natural part of investing in real-estate. It’s important to make decisions based on your financial situation, long term goals, and a clear understanding of the local market dynamics.
If you need some more help to stay calm about your financial situation while you ride out market fluctuations, get in touch and we can chat about your circumstances and goals!