There have been many observations about an apparently sluggish start in the property market. However, it is mostly founded on the fewer than 5000 capital city auctions that have been finalised to date. The roughly half-a-million residential property transactions annually in Australia is too small a number to form a verdict to the year.
The commonly sluggish start to the auction calendar year points to a wide-ranging reality. The property market is never constant throughout the year. Stocks increase and decrease across the 12 months, impacted by various factors including seasons, and school and public holidays.
In any instance, the amount of stock and where it is up or down is the accumulation of numerous good judgements by estate agents and their sellers about the ideal time to launch a campaign for their property. In every situation, thorough consideration will have been performed on the total of identified and probably competition from like properties in the area, and the possibility of the auction day overlapping with high buyer figures.
Miscalculating market tides can cost a seller tens or even hundreds of thousands of dollars. At this critical time, there is a crucial element that is needed.
Tap a real estate agent
Here is where an agent comes in – not just an agent but one that possesses two critical qualities: experience and knowledge of the current market. They also should possess on-the-ground timely familiarity about present conditions.
Needless to say, not all agents possess these qualities and though they may have them, they don’t use them to further boost their client’s interest at all times. In real estate, there is a joke that when an agent is asked when the best time to sell is, they will always says “now” as they worry that recommending a date months away will lose them a client.
This is partly the reason why the gap between supply and demand continues. Other issues also come into play including non-discretionary sellers who aren’t flexible enough to pick the best possible auction date, and the propensity of too many sellers to adopt a wait-and-see attitude before jumping in, and then discovering they’re selling when the market is saturated.
It pays for sellers, as well as buyers, to have a sound grasp of the market tide.
Auction figures are more likely to increase from the beginning of February through to Easter or a little after. Afterwards they decline during winter from June to July, recovering in spring with the highest number of auctions occurring in late October and November.
Due to the ebb and flow in stock, auction clearance rates normally decline from September to December, and to a lesser extent, decline from March to late May.
But from these forces at play, we can glean the best time to sell, and this is typically before mid-March and from late July through to early October. On the other hand, the best time to buy is during late May and late October through to December. It tends to be more balances at other times of the year.