It’s known as ‘spring selling season’; the time of year where a surge of properties come on to the market. With all this extra stock and the weather starting to warm back up, spring is often touted as the best time to buy or sell property.
So how much extra stock comes on to the market at this time of year?
According to property research firm CoreLogic, an extra 1,000 auctions per week are expected over the next three months across all capital cities. This is a jump from about 1,500 to 2,000 per week in winter, to 3,000 per week across the country in spring.
However, further data from CoreLogic suggests that despite this increase, spring is actually not the busiest time of year on the property market. Based on the average number of sales by month and season over the last thirty years, it is autumn that comes out on top. Twenty-seven per cent of all sales over the last three decades have transacted in March, April and May, with the most popular month for sales being March.
According to this study, spring is the second most popular time to buy.
This raises the question of whether spring selling season really the best time to buy and sell property.
Statistics aside, we take a look at the pros and cons of buying and selling as the weather warms up.
Pros of spring selling season
- With more properties on the market in springtime, there is greater choice in terms of housing type and features. This means there is a higher chance of finding the property that’s right for you
- Spring selling season is usually more advantageous for sellers. Despite the greater number of other sellers, there are more buyers on the market and more competition for properties, meaning the seller may have more room for negation and competing offers, potentially leading to a higher sale price
- With the winter gloom on its way out, properties tend to present in their best light in spring. Gardens are blooming, there’s more natural light and things look brighter and better overall
- The warmer weather tends to lure more people out to open for inspections, meaning more traffic at open houses for sellers
- Given the timing of the year, a spring sale allows buyers to move in and get settled into their new home before the madness of the festive season
Cons of spring selling season
- There is more competition for both buyers and sellers. Buyers will have more potential buyers to compete with, lowering their chances of landing their dream property while sellers will also have to ensure their house stacks up against all the others on the market.
- In a quieter market, buyers may have more chance of negotiating a lower price with the seller. This is less likely to happen if there are several buyers interested. In fact, prices are more likely to go the other way if counter offers are put on the table.
- Given the busyness of this season, it’s likely to be a more stressful and faced paced transaction (unless the owner makes it a slow process to get a higher price, then it will just be stressful!)
- With properties presented in their best light, it might be easier to overlook flaws, so pay extra attention at open houses. With spring light pouring in, you might not see for example how gloomy it can get with its lack of light in winter or that it’s prone to mould.
Research the statistics for your particular city, region or suburb to determine the best time to buy and sell there. Remember that all property markets across Australia are different (what’s happening in Sydney is often quite different to the market in Perth or regional South Australia, for example) so spring may not be the best time for buying and selling in your area.
Furthermore, sellers may benefit more from selling at a different time of year due to their location and type of property. For example, if it’s in a holiday location, a house on the market in summer might attract a wider audience and greater range of buyers who happen to be in the area. Alternatively, if your house has great natural light in winter this may be a better chance to show it off.
Finally, it’s important to buy and sell at a time that is right for you. While you always want to keep market conditions in mind, there’s no point rushing in to buy in spring if your finances aren’t quite in order and you’d be in a better financial position to buy in summer.
No matter what time of year you buy a property, if you’re an investor buyer it is important that you are claiming all of the depreciation deductions you’re entitled to in order to maximise your returns. For more information, contact our expert team on 1300 728 726 or request a quote online.