By Hayden Groves
During the winter months, when market conditions can flatten out, vendors often choose to hold off on their selling plans until spring when both gardens and moods improve.
In a balanced market, this can be a reasonable strategy; an attractive garden can add genuine value to a property and there is a more positive atmosphere once winter ends. Locally, the residential rental market normally slows during winter with notably fewer tenant enquiries for vacant properties during the cooler months of the year. REIWA’s statistics consistently reveal vacancy rates often move with the seasons, even during high rental demand periods. From September through to March the vacancy rate normally drops, rising again during winter.
it is wise to sell and re-buy contemporaneously
Property owners also tend to be less enthusiastic to move during the winter months. Often for reasons similar to those displayed by tenants, although broader market conditions have far more impact on selling outcomes than the seasons alone. However, with current market conditions of short housing supply and high demand, seasonable variables matter far less.
The current market conditions indicate that sellers and tenants could comfortably transact property now on the proviso they stay in the market. For tenants, finding a rental is hard enough and with rents likely to continue to rise, securing a twelve-month lease at a fixed rent now makes sense. For sellers, in current market conditions, it is wise to sell and re-buy contemporaneously.
Buying in winter is a reasonable idea, as some buyers (like tenants) are more inclined to stay put during the cooler months, giving those that are looking to buy an environment with fewer competing buyers about.
However, with property listings down to 6,157 (of which 1,629 are blocks of land) compared to 8,294 a year ago, buyer activity remains elevated. Rental listings have plunged to 2,047, 400 fewer than last year. With such low stock levels, buyers and tenants are having to complete for properties which counters any typical winter seasonal decline in demand.
Many local homes are also lovely and cosy in winter and present themselves well to would-be buyers. Those homes with effective solar passive design, northern orientation shine and a crackling fire in the corner can do wonders for buyer sentiments. If selling in winter, make sure your winter weeds are pulled, any moss and mildew on paths, walls and bathrooms removed, and try and hold inspections when the weather forecast is fine, and the sun is high in the sky.
