If you’ve been reading the papers you’ll know all about the surge in new listings that’s expected after winter ends next week. It looks like this spring promises more of the same, whilst the RBA has been trying to cool the surge in housing, by reducing interest rates, can’t quite work that one out, new listings and buyers are coming out of the woodwork, yet again.
Ask yourself, are there any seasonal trends you can use to your advantage when looking for the best deal on your new home?
Real estate agents often use the idea of a spring rush to tempt owners into selling and entice buyers with the idea of hundreds of new properties hitting the market. And the most recent springtime figures for Australia’s property market are backing them up. Core Logic RP Data figures show new residential property listings across all eight capital cities for September last year were at there highest since March of the same year. A similar rush to sell occurs in March, as we move out of summer and a long holiday period.
So what does it mean for buyers? You can probably look forward to busy Saturday mornings with plenty of open house inspections to pack into the day. But buyer numbers are often on the rise too, leading to more intense competition and a temporary boom in prices.
Beware of the urgency of buying in a hot market, with properties being snapped up quickly, you can often feel like it’s you who is missing out. Don’t let the pressure force you into paying more that you should.
Buying in winter
An important tip, if you’re shopping in winter be sure to think about how your prospective home might feel when the sun is out again. An apartment or cottage could have you roasting in the summer if it doesn’t have good ventilation or air conditioning. And, of course the opposite could also be true. The market can be slow and boring but if you know what you want there are always bargains to be had.
The end of December, and the end of financial year in June, can both be good times to bag a bargain property. Sellers in a pre Christmas market are often keen to sell before the long January slump rather than hanging on for another six weeks or so.
At the end of the day, taking a long term view of the buyers and sellers in your desired market will indicate when it is a good time to buy. And just getting a great deal on your new home isn’t only about the price. The right home loan and interest rate on your mortgage can save you even more in the long term, so it’s worth seeking the right advice before you buy. That’s where we can help.