Winter weather and your auction

Written by in National on May 13, 2016

Around the country, heating bills are about to rise with the cooler months setting in. The struggle of deciding how many layers to wear each day and if you need to carry an umbrella are quickly becoming reality. But does the Winter weather affect your home going under the hammer?

Number of houses for sale
The volume of houses on the market fluctuates all year round, with many factors contributing to the number of auctions each week. Public holiday weekends have the most outstanding affect on the numbers. However weather doesn’t seem to be an issue. The last week of April recorded 1308 auctions in Victoria, 6% higher than the last week of Summer.

Clearance rate
So does the chilly weather affect the number of houses sold at auction? Common sense would tell you that less people would come to an auction if the weather isn’t so friendly, however we all know a lot of people at an auction are there for a sticky beak. During the colder months, the number of attendees at an auction drop, although the percentage of serious bidders increases. Weeding out the serious buyers, from the nosy neighbours.

Director Auction Services at Raine & Horne, James Pratt stated “in Hobart for example, temperatures are getting closer to winter averages*, yet we saw 100% auction clearances last Saturday.”

“The Sydney and Melbourne market recorded an auction clearance rate of 72%. The next best was Adelaide with a clearance rate of 61%,” state Pratt.

Regardless of the lower attendance numbers, “there are still plenty of committed buyers around. “These conditions make a winter auction a viable selling option for vendors,” said Mr Pratt.

Now you know the number of houses aren’t affected, nor is the clearance rate, does the weather affect your sale price? spoke with professional auctioneer of 22 years, Barry Sloan.

In your experience, does the colder weather affect the sale price at auction?
“No, the right property, in the right area for the right buyer could be auctioned or sold at anytime.  Supply and demand.”

Does it affect the expectations you set with the home owner?
“In relation to seasons, no.  No vendor has ever expected to take less because it’s cold or raining.”

Last year the median price on houses in Metropolitan Melbourne increased from $688,000 in the Summer quarter to $729,500 in the Winter quarter.

So if you’re looking to sell, don’t count out the Winter months. You may be pleasantly surprised with the result.

Source: *