Spring has finally arrived! Traditionally recognized in real estate as the prime selling season, it’s generally the time when vendors come out of winter hibernation and take advantage of the better weather to showcase their homes at their best and put their properties on the market. It’s also known as the time when ready buyers are looking intensively, eager to secure a new home before Christmas.
In many places around the country, especially capital cities including Sydney and Melbourne, housing supply is still not keeping up with demand and both auction clearance rates and private treaty sales have been strong through winter. For buyers, let’s hope that we see the large influx of properties that some markets are desperate for.
However, while spring is definitely still the busiest sales period, the behavior of the market has changed significantly in the last decade. These days, when it comes to selling property, vendors are more likely to concentrate on their personal circumstances rather than the time of the year. These include factors such as a growing family, downsizing or work conditions like a promotion or retrenchment. Economic factors such as interest rates and consumer confidence are also more likely to drive the market than the changing seasons.
When it comes to buying, purchasers are also driven by personal factors more than seasonal ones. First-home buyers look to purchase when they've saved a deposit, regardless of the time of year, and investors are more concerned with returns than seasons, and these buyers make up a major proportion of the market.
And changes of season don’t necessarily have much impact on property prices either. Spring price rises are more likely to be a continuation of trends which began pre-spring rather than be a reflection of the increase in transactions. If you’re buying and selling in the same market, it won’t make much difference if prices are going up or down. When planning the timing of your sale, don’t obsess over price movements or be dictated by the media’s take on the market – you will consistently hear a spectrum of opinions. Sell, or buy, when your circumstances dictate that you are ready.
