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Is summer the new ‘spring’ property market?
February 1, 2017
The season of spring always gets kudos for hosting the most active and exciting property market of the year. But is summer taking over as one of the peak times to buy and sell real estate?
There’s no denying that summer is a busy period for real estate agents and property buyers alike. Of course, the market might experience a couple of weeks of slowed activity over Christmas while people get lost in the silly season, but by early January, buyers are back to search the market in earnest.
There are a few reasons why summer is edging into spring’s territory as a premier property season, including:
Active auction buyers
Unsurprisingly, more people are likely to go to auctions when the weather is warmer. Perhaps this partly explains why, in the weeks leading up to Christmas 2016, Sydney and Melbourne both recorded an auction clearance rate of above 75 %, reports Commbank. This means that of every home listed for auction, at least three-quarters of them sold.
New year deadlines
As we kick off the new year, many people are keen to ‘lock in’ their new home, leading to more urgency and decisive action. They are more motivated to view potential homes and more aggressive with offers when they find the one they like.
Tied into that sense of new year deadlines is the fact that many people start new jobs, embark on new study programs or follow other opportunities as the new year begins. This can involve relocating, prompting a flurry of activity in the property market.
With summer becoming the hot new selling season, what are some of the top tips to get the edge?
Tips for buying property in a hot market:
- Get finance pre-approval. This means you’ll know exactly how much you can afford to spend when you’re browsing property listings, so you don’t waste time – yours or the agent’s – falling in love with properties that are out of your price range.
- Always go in prepared. When you are looking through properties, bring a $1,000 cash cheque with you. This way, if and when you find a property you love, you can make an immediate offer with a cash deposit on the spot.
- If you can, make your offer unconditional. By putting your offer in writing, with a cheque attached, and unconditional, your offer will seem like a rock solid proposition compared to other prospective buyers. Even if you’re offering a slightly lower price, the buyer might decide to accept based on the certainty of the deal.
As a seller, too, it’s important to put your best foot forward, even in a competitive market.
Many property owners make the mistake of believing that in a hot market, they can do no wrong as the buyers will still flock to them, but a poorly presented property can still serve to turn people off.
It’s also important that you don’t price yourself out of competition. When the market is hot, it can be tempting to slap an inflated price tag on your property and hope for the best. However, if the market doesn’t bite immediately, your listing will quickly go stale – and the only buyers you’ll attract are those submitting low-ball offers.
Worried that you’ve left it too late to invest in property? Michael Yardney shares his tips for success here >>