It is very rare that someone buys something without selling something first, and vice versa. If you are a homeowner and you’re looking for the right time to sell your house so you can buy another, you may be concerned that the price of your current home is dropping. But let’s take a closer look at that: assume the value of the house you are selling drops by 10 per cent. Let’s also assume that you plan to buy another home (whether upsizing or downsizing). The key to remember in a downturn market is that the person selling their home to you is going through the exact same thing. In other words, if the value of your home dropped 10 per cent, so too did the value of the new home you are buying. Focus on what your bottom line “net” is, rather than what you thought or had hoped to sell your home for.
conclusion: in most cases, the net effect of a market correction is zero.
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