Final Word from Tuesday, February 25, 2020
It's been 16 months since we last suggested that it might be time to sell your new home. Those who didn't take the bait have likely enjoyed a sharp rise in the paper value of their real estate and can have a good laugh at our expense. Those who sold probably took a significant hit, but they can now sit back and monitor the global situation without feeling great financial angst, assuming they found another housing solution. As the run-up to World War II showed, crises accumulate over decades and then find their outlet in brutal ways. Even if the coronavirus outbreak peters out and is forgotten, it is yet another crisis in a long string of negative events dating back decades. Each one builds on the previous ones. Chances are that the denouement will come before most of today's mortgages are paid off. "But where will I live if I sell my home?" you might ask. It's better to ask this now while prices are still high than to wait until the accumulation of crises forces the issue. [ Czech Republic house apartment property bubble ]
Glossary of difficult words
to take the bait - to be lured by an offer, flattery, or a provocation into doing something, esp. something disadvantageous or dubious;
to take a hit - to suffer heavy losses or be badly affected (by something);
angst - a feeling of deep anxiety or dread, typically an unfocused one about the human condition or the state of the world in general;
to peter out - to diminish gradually and stop;
denouement - the outcome of a situation, when something is decided or made clear;
to force the issue - to require someone to do something or to make a decision about something.