When is it ok to sell in a falling market?

There are plenty occasions when selling in a buyers market is not so bad. Probably the main one is when you are also going to be a buyer when you have sold. But, ideally this will be when trading up in size instead of down. If you are taking a hit on your selling price of 10% and you can get the same discount on your larger, likely more expensive purchase you are doing well. Also, if you are selling and have a large amount of equity that can then be invested elsewhere, into a vehicle that will be bring in gains that are out performing the property market, this is an obvious reason to get out early and turn a loss into a gain. Currency is an often overlooked trade. Speaking to an FX trader and thinking about where the money originated from the original purchase and where it could be traded next.

Falling markets are also relative. If you bought the asset many years before, you are still selling at a decent profit, assuming you didn't buy something very over priced to begin with. It is essential to consider other factors such as a tax on any capital gain. If the property is not your main residence, you will be liable to pay tax on the profit. Sometimes selling in a falling market means you make no profit and therefore pay no tax. Depending on the sums involved this may even it out.

Interest rates being at a peak in most middle aged rates payers memories, will be another reason to sell. If you are not going to be able to pay the mortgage, you had better sell fast and cut your losses. Better than being repossessed and getting a bad credit rating long term. This is a bitter pill to swallow but one that very sadly is a more common reason to sell in a down turn.

Sometimes it is also a good idea to sell at a cut price to get a head of a falling market. if you wait too long to cut the price, you may have to cut a larger chunk off later if the market continues to dive.

Knight Frank has published "that while the number of new prospective buyers in London rose 12% between August and September, it was half the increase experienced in the previous two years. In calmer political times before 2016, the same jump exceeded 40%."

Prices in the majority of London post codes in which we operate are reducing at around 5% a month in recorded sales prices and this is set to continue until the market finds the trading level at which buyer sentiment suddenly changes. That is how it works, its falls slowly until it suddenly flips. And it will flip, but that relies on stability and that stability is not yet in clear sight.

Selling in a buyers market can be worthwhile. But it also relies on buyers willing to take a risk. There is always a market. Life ensures this is the case.