Don't Fear Changing Markets—Embrace Them.
“It’s always going to be like this.”
Whether we acknowledge it or not, that’s the attitude most people take toward anything that stays the same long enough, whether it’s the upward direction of home prices in the Bay Area, or a booming stock market.
When things change, that comfort turns to uncertainty, and finally fear. Even though we understand intellectually that financial and real estate markets go up and down, we can’t help but become comfortable when they head one direction for long enough.
Humans love comfort, perhaps more than we should. It’s a fact of the human psyche that we often prefer that things stay the way they are even when the status quo doesn’t particularly benefit us. Predictable mediocrity just isn’t as scary as the unknown of change.
Fear of change can also impact our decision-making, often leading to paralysis. But while we take no action, opportunities are often lost. In financial markets, most of the wealth isn’t made because the stock market is at an all-time high. Rather, it’s made because investors acted when prices were low and the masses were fearful. Yes, markets had to rise again for investors to realize their gains, but the process started well before the surging market, when most investors were gripped by fear.
Buying or selling a home is no different. Instead of trying to perfectly time the market, take an objective look from a distance and figure out what kind of market you’re really in. If you’re considering buying or selling a home, don’t put your entire life on hold out of fear. Embrace the change—you’re in good company.