Why November and December are great times to buy and sell: Part 1
Wed November 22, 2017
Traditional wisdom dictates that early spring is one of the best times to buy and sell property in Sydney. While it is indeed true that the market is particularly strong in September and October, there's no reason to put buying or selling on hold after this period. In fact, the tail end of spring and the start of summer can be a fantastic time to make a move, regardless of whether you're looking to buy that dream house or sell your current home and move on to something new.
The Sydney property market never sleeps, and over this series of articles we're going to take a look at why the pre-Christmas period is such a good time for buyers and sellers. In this first piece, we'll take a look at how the season can benefit buyers, particularly in 2017.
Christmas is well and truly on the way, and for a lot of sellers that means 'crunch time' has arrived.
Buying in November and December
There are all sorts of reasons why buyers should keep their eyes peeled for potential new homes towards the end of spring, but one of the biggest is the impending arrival of the holiday season. Yes, Christmas is well and truly on the way, and for a lot of sellers that means 'crunch time' has arrived. With beach holidays and festive feasts dominating the end and start of the year, it's important to get any business on the property market done as soon as possible.
This means that many sellers - particularly those who may have had homes on the market for a while - will be more keen to finalise the sale of their property. Whether this is reflected in a price drop or a willingness to be more flexible at auction, buyers shouldn't underestimate the value of being able to offer a quick deal that gets everything finalised before the end of the year.
In addition, December 31st is the date where anybody owning a home that isn't their principal residence will have to pay land tax for the upcoming year. Accordingly, any investors looking to offload properties will have a real incentive to sell and avoid paying this. If you've been thinking of starting or adding to your Sydney portfolio, there's no better time to snag yourself a bargain.
The state of play in 2017
While November and early December always offer opportunities, 2017 offers a particularly strong market for buyers, arguably one of the strongest in recent years. This is due to the cyclical nature of property, which has been reflected in a slight drop in clearance rates over the last few months.
The shift in the market has seen bargain hunters come out in force to take advantage of the reduced clearance rates (Sitting at roughly 65 per cent according to results posted by the Domain Group). As a result we've seen properties go for slightly less than what they might have six months ago. Even if the savings are relatively small in what is still a very strong market, every little bit makes a difference, contributing to your eventual budget for when it comes time to renovate!
Because the Sydney market does move in clear cycles, these opportunities may not be available for long.
Of course, it's well worth reiterating that because the Sydney market does move in clear cycles, these opportunities may not be available for long. It's almost impossible to predict what the market will look like in a few months, let alone this time next year. So, if you've been on the hunt for a property and were thinking about taking a break over the next two months, it may be worth reconsidering and taking advantage of the current state of play.
November and December aren't just good news for buyers though. The season also presents all sorts of opportunities for savvy sellers looking to get their business done before Christmas, and in part two of this series, that's exactly what we'll look at. Until then, be sure to contact Laing+Simmons with any and all questions about buying or selling in Sydney!