Looking to buy real estate in Australia but not sure which time of year sees the property market thriving? Look no further! Let’s examine the best time of year for Australian home buyers and property sales.
How does the time of year affect the Australian property market?
Many factors impact the property market in Australia, with the time of year playing a major role. It is not just because the seasons change but because of other things that the different times of the year bring with them.
Other factors impact market conditions (especially coming off of a global pandemic), like the state of interest rates and the number of properties in the market.
Using RP Data (rich property data) from Corelogic, we can see trends that have emerged in the housing market over the past 20 years. Here is a quick rundown of what you can expect if you are looking to sell or buy property at the major times of the year.
Spring property season
If you’ve been reading up on real estate trends, you might be wondering what makes Spring property season stand out.
Spring is usually the busiest time of year for the Australian property market, with real estate agents taking advantage of the warmer weather to hold auctions and many homeowners looking to sell property. Spring helps to maximise a property’s curb appeal, with real estate looking its best in clear weather and with gardens in full bloom.
A greater number of properties on the market leads to more choices for buyers and less competition over the same real estate. An increase in listings usually outweighs the influx of new home buyers, and Spring is generally thought to be a buyers’ market.
This effect will be most pronounced in areas with bigger property pools, like capital cities of Sydney, Melbourne, Brisbane, Perth, Hobart, and Adelaide. While some other coastal areas of NSW and Queensland may also see this boom, rural areas will tend to experience a less concentrated effect.
Summer property season
When the weather heats up, we see a shift towards a sellers’ market. This means fewer properties for sale, which is less likely to drive up property prices. For those looking for a first home or to buy property on a strict budget, these market conditions could be ideal.
If you are looking to sell property, this may mean you want to avoid the summer holidays to maximise your property value.
More people are on the hunt for a home at the beginning of the year, keen to move in before a new school year starts (avoiding mid-year school moves for kids) and the new year feeling of a fresh start. This could mean a quick sale, but does not always mean a huge number of properties on the market.
It is important to keep in mind the public holidays surrounding Christmas and the new year, which could lead to delays in processing your property sale or home loan application.
Autumn property season
Autumn is another desirable season when it comes to curb appeal boosting property prices, but your house may look better in the sunshine than the dreary Autumn rain.
Autumn can be considered a bit of a no-man’s land when it comes to buying and selling property. This can mean there is less competition if you are looking to list your home for sale. It is not necessarily a recipe for a quick sale, and may mean that the new home of your dreams isn’t on the market.
Winter property season
While Autumn and Spring can both be good times to buy property, the winter months tend to be quieter.
This can lead to a decent sellers’ market, with less competition and a smaller number of properties up for grabs. In comparison, your property could seem more desirable and fetch a higher price. It’s important to make sure that your property is in top condition if you’re selling in winter, since the cold weather can highlight flaws in a property to a potential buyer.
People also tend to spend a lot of time indoors in the winter months, which means they are less likely to buy property or go to auctions. Likewise, they are less likely to part with their property.
Does the property market always follow seasonal trends?
Though we can make some predictions about the best seasons to buy and sell property based on past RP data and historical market conditions, there are often other factors that contribute to property trends and make this less predictable.
This past year was an example of a break from the usual property seasons. Competition in the property market has remained high through the year despite high interest rates and unusual market conditions.
Part of this will have been the run-on impact of a global pandemic, as well as the current demand for rental property, lack of accessibility for first home buyers, and changing policy surrounding stamp duty and land tax.
When is the best time of year to buy property?
In general, the best season (and the best time of year) to buy property in Australia is generally considered to be just before the winter months or just after — meaning late Autumn or early Spring could be your best bets.