In Spring, we tend to clean out the old and invite the new.
This is no different when it comes to the property market which typically sees a rise in the volume of stock available, and a host of new and interested buyers each Spring season.
What’s happening right now?
Across Inner City Sydney this year there’s been lower levels of stock available. While we still expect to see a rise in stock over this spring, we don’t expect it to be a dramatic increase like the boom time we experienced a couple of years ago. For example, the number of new listings across the city are down 31% as of July, and total listings are down almost 10% on this time last year. This means buyers and sellers are taking a slower, more cautious and circumspect attitude rather than rushing in.
The good news is that auction clearance rates have risen so far over Winter 2019, and we’re seeing a renewed confidence in the market now that Spring is in the air. The certainty brought by the election result has helped this, as have interest rate cuts and the relaxation of lending requirements by APRA.
Why is “Spring selling” a thing?
The seasons and calendar events impact selling and buying behaviour in the property market in various ways. While there’s no single perfect time to buy or sell property, there’s little doubt that "Spring selling" is a phenomenon, and results in a regular, seasonal reinvigoration of the property market.
In Inner City Sydney, we have observed that Spring can actually come early, as the milder Sydney winters don’t deter buyers as much as they do in harsher climates. When Spring hits, we see the uptake in sellers in the market as well as prospective buyers, making an atmosphere perfect for some increased real estate action.
With the looming deadline of Christmas, the end of school year, and summer holidays ahead, Spring is often the time people feel motivated to make big decisions, and wrap up a move before the new year.
What does Spring mean for the property market?
Spring signifies awakening of the market, both from a sellers and buyer's perspective. For sellers it's a good time as there are more prospective buyers actively out in the market. For buyers, the influx of homes for sale presents a competitive opportunity to negotiate from a position of strength as an increase in properties means that sellers may be willing to make sacrifices.
For example, in Alexandria we saw the median gross yield of houses go up from 2.8% in September 2018, to 2.9% in October 2018 and to 3.0% in November 2018. This shows that properties were selling with an increased yield through the Spring months, with the number of sales for the year of 2018 peaking in October at 98 homes, well above the 86 average for the year.
A similar story can be seen in Erskineville when looking at Spring 2018 figures, with property sales steadily holding at 93 in September and November, again well above the yearly average of 77. These insights paired with a higher turnover of property indicate signs of a market growing in strength, and the positive association between Spring and property selling.
For Buyers: Keep your finger on the pulse of the market
With the surge of properties on the market, it can be easy to get overwhelmed and there’s the potential to get off track when it comes to your buying plan. When you’re considering taking the plunge, it’s important to assess the state of the market and keep track of what’s popping up for sale.
Don’t get caught up in the competition - it’s worth investing time into preparation to ensure that your final decision is one that will satisfy your long-term needs. Make sure you stick to your list of must-haves and understand what the trends are indicating in terms of value for money, including the long-term growth trends.
For Sellers: Invest in ways to give your property an edge
Making time to Spring clean and reveal your property’s true potential shouldn’t be underestimated during the Spring property blitz. It’s the perfect time to fix those unfinished jobs and pay attention to presentation to ensure that little niggles don’t stay in the back of the viewer's minds when they walk through your property.
First impressions are important - so spending time to ensure your exterior matches the vibrance of the new season, whether you’re investing in some curb appeal or a new paint job, will help you to outshine the competition.
Professional staging services are perfect for giving you that competitive advantage to stand out in a more crowded market.
The best month to buy or sell property ultimately depends on when you’re ready: practically, financially and mentally.
Get in touch with our team today to start planning your next property move.