If you’re on the hunt for a new property or are preparing to bid farewell to your current one, you’ve probably heard whispers about the best seasons for buying or selling property.
Seasons affect our moods, clothing choices, and even food preferences. In much the same way the seasons affect the real estate market, which can be the difference between properties being swiftly purchased/occupied or sitting empty for weeks and even months.
How do property prices change with each season?
A research done by the Swinburne University of Technology suggests that the cheapest time to buy a house in Australia is just before, during, and right after winter. In the major cities of Sydney, Adelaide, and Darwin, the least expensive month to buy was June or July, suggesting that if you buy during winter you may find yourself a good deal.
On the other hand, Melbourne and Brisbane sold properties with prices up to 2.5 per cent less during May, which translates to over $21,000 based on Melbourne’s median price.
With other cities they act differently, as the more expensive months tend to be during the warmer times of the year. In Darwin, Perth, Adelaide, Hobart, Canberra and Brisbane, average sales prices during summer and spring are between 0.8 and 5.95 percent higher than during the rest of the year.
It is often touted that spring, with its bright blooms and comfortable home inspection temperatures, is the biggest property season. Additionally, Commbank has indicated that in the property market, spring and summer are the busiest times. In fact, over the last few years, CoreLogic Data shows that each spring has seen at least one month where over 3500 auctions occur – that translates to over 115 auctions daily.
Why do seasons affect property prices?
The benefits of seasons for the property market for buyers or sellers, thus affecting property prices, often swing both ways. For example, sellers might want to skip the winter months as the cold could keep buyers from looking, or skip over summer sale dates when they’re away during the holidays. This could lead to lower sales prices as the demand is less.
However, these normally quieter times in property might be the ideal time to sell, as lesser properties on the market could mean serious buyers are likely to scout out your place first. For buyers, a traditionally slower season could mean less competition.
Then, on the flip-side in the busier autumn and spring months, sellers could be keen to capture rising prices from higher demand; but not necessarily find as much interest with so many properties for sale.
It may even come down to avoiding specific events or tourist spikes, which could turn your quiet street into a parking fiasco, making it look less idyllic. And while supply and demand might be a vicious cycle in major cities, you might not see significant fluctuations in regional areas where housing can be more affordable and less competitive.
When is the best time to buy or sell property in Australia?
Basically, there isn’t necessarily one right time. It comes down to a range of factors including the broader state of property prices and a bit of luck. Then, with the pandemic happening in early 2020, things got even more complicated for the property market equation.
Whatever time you choose to buy or sell, we highly recommend getting in touch with experts to get the best advice. It also helps if you do your own research too!