Home for the Holidays: Why It Makes Sense to Buy Property before or after Christmas
A new home may not be a common item in many people’s holiday shopping list. Being pre-occupied finding gifts for loved ones, a home purchase usually waits until long after the new year. After all, agents usually take a break around Christmas and the market also comes to a slow around that time.
But according to Tim Lawless, research director at CoreLogic, while there are occasional variations in Australia’s housing market, it generally fits into a seasonal pattern. September and October, the months leading to spring generally see an upsurge in the volume listings, and consequently, more buyers and higher prices.Meanwhile, buying a home around Christmastime can, in fact, help you land a bargain.
Here are some reasons it’s wise to shop for a new home before or after Christmas:
Less Competition, More Bargain Deals
According to Malcolm Gunning, past President of the Real Estate Institute of Australia (REIA) and Real Estate Institute NSW (REINSW), families usually postpone home buying during school holidays, in favour of spending time with the kids. He adds that family units tend to be big spenders – they pack up and go on vacations during holidays. For home buyers, this means less competition, and possibly lower prices.
In Sydney, for example, data from CoreLogic shows that in the spring of 2016, there were 35,055 listings and 14,925 sales, with a median price of $990,000. In winter 2016 and summer 2017, reduced real estate activity adjusted the median price to $890,000 and $906,000 respectively, allowing buyers to secure better deals.
Bag a Bargain
It’s true that holidays typically spell a lull in listings, but thereare still sellers who are intent on closing a sale before the end of January and before new buyers start coming in. This means that sellers are more likely to negotiate, to make a quick sale.
Gunning adds that November and December are the biggest auction months, so it makes sense to hunt a home that may have been passed in a looks like a stale listing by mid to late December.
If your hands are absolutely full around these months, don’t fret. Gunning says you’re still likely to get good deals at the start of January, as around this time, listings that were passed in before Christmas enter the market as a private treaty sale.
To get the best value for your money, it always pays to do your research.
Come Home this Holiday Season
If you choose to hunt for a new home, turn to award winning buyer’s agent, Nick Viner. He provides a professional and supportive service focused on finding the right property at the best possible price.
One last thing: Merry Christmas to everyone from the team at Buyers Domain & Buyers Domain Property Management. May you have a peaceful, relaxing and happy time this festive season with your family and friends.
Please note our office will be closed from Friday 21 December, 2018 to Monday 7 January, 2019
For more information about our services, get in touch with Nick on 0405 134 645.