No one is immune to the perils of the fluctuating market: here’s a guide on how to give yourself a chance when buying a property.
It’s widely known that to get onto the property ladder, you need to be prepared for its fluctuating nature. While it can be an unpredictable market, in order to get bang for your buck, it’s good to understand how the time of year can impact sales. Fraser Turvey, Property Partner at The Agency in Sydney, and Martine Chauvin, Director at Prime Estate Melbourne, discuss the elements that though may seem minor, are important to whether a property’s sale flies or fails.
The current state of play
When buying a property, it’s important to note the current property investment landscape. As a buyer, you might be in luck. Martine predicts buyers will have the upper hand this year: “Last year we saw low supply and high demand, so every weekend was a good weekend to sell, there weren’t many properties on the market so sales were up.”
“This year is the reverse. For example in Sydney, we are seeing more stock and a lot of buyers sitting on their hands due to varying factors such as lending restrictions, therefore we see lower clearance rates at auction”, she adds. So, if you’ve been scrolling through property pages waiting for the right time to buy, your patience may pay off this year.
Take advantage of ‘Super Saturday’ before Grand Final weekend
Whether you’re an AFL, NRL or netball fan, Aussies are more likely to be attending the biggest sporting event of the year than an open home. According to Martine, making the most of the Saturday before a sporting event – ‘Super Saturday” is a peak time for buying and selling “when everyone’s trying to get their properties on the market.”
Avoid long weekends and school holidays
If you do have a trip planned, rather than putting it off to focus on property search, take advantage of this time to avoid the stresses of the endless open houses and relentless auctions. “The majority of people pack up and go away,” says Martine. So, do the same! If there are less people around, there’s likely to be less stock on the market – enjoy your break.
Instead, take advantage of the peak times throughout the year. “The right time to purchase is when there is a large supply of properties on the market,” says Fraser. For buyers, you should aim to enter the market at this stage to boost your chances of getting a good deal.
In Fraser’s opinion, “Peaks of supply are February through to Easter, Easter to June and September through to November.”
When entering the property market, the key is to avoid coming in blind. “You really have to do market research and see what prices homes are selling for and what the buyers’ market’s like,” says Martine. By doing your research you’ll be better equipped to decide whether you’re buying at the right time, and better prepared in case of failure.
Martine emphasises the importance of getting educated about the areas you are interested in, “It’s just a matter of having a look at the market you’re in, and doing your due diligence on the property and what it has to offer.” Don’t be afraid to attend auctions even if only in the name of research, don’t hesitate to introduce yourself to real estate agents or sellers and ask questions – buying a property is no minor decision so in order to get the best out of your buy, start studying.
When looking at the right time to buy in the coming year, Martine believes there is “no set date, no distinct time, but winter could be a good time as you might see a reduction of buyers out in the market place,” but she suggests, as long as you’re prepared: get in there! “If you’re motivated and ready to go, now is as good a time as any.”
Talk to your Aussie broker today to find the time that is best for you to enter the property market.