Everyone knows that in the real estate world, one of the most persistent notions is that selling in Spring will achieve the best possible result and therefore, the property market cools as the temperature does too. However, data actually reveals that selling in spring may be no more advantageous than selling in another season, Winter, for example!
Better yet – the chilly season presents its own advantages. This could be especially true this year, given the shift that might happen once incentives such as JobKeeper and Mortgage Freezes stop. As always, it all comes down to a simple equation of supply and Demand.
Let’s take a look at 3 key advantages to selling your home in Winter.
There’s less competition
In winter, listings levels are almost always less than other times during the year and this is even more true in 2020. The latest Index report from CoreLogic showed that total stock levels are at an all-time low, compared to previous years.
Put simply, less homes available means more eyeballs on every property. When you look at this from a supply-demand equation, less stock means that buyers have less choice, leading to higher demand for properties that are on the market. Generally, this results in buyers willing to pay more, which can only be a good thing for a vendor!
Buyers don’t hibernate
Working hand-in-hand with less competition is ready-to-go buyers. Volumes of stock may change, but buyers remain constant.
Think about it: the reasons people need to move, whether that be upsizing, downsizing, divorce, deceased estate etc, don’t just stop because it’s cold. It sounds simple, but is something that people tend to overlook.
On top of this, Spring and summer campaigns bring out onlookers; during quieter periods, those who are looking are doing so with a sense of purpose which often leads to a faster sale.
In Australia, the two big sites competing for your property search are realestate.com and Domain. At the moment, both are reporting higher search enquiry than ever before. Again, this means more eyeballs on fewer properties. With less supply in the market, people also tend to look away from the large property search sites, and onto properties that are selling off-market. These buyers are focused and ready to move, resulting in an efficient and painless sale.
So, when you combine a smaller pool of listings with buyers who have a need to move, you can get great results, and this is exactly what the market is experiencing right now.
2020 in Focus
It’s no secret that 2020 has been a roller coaster for many industries, including real estate. Now that we are starting to come out the other side, buyers, sellers and investors are starting to realise that the industry hasn’t been hit as hard as originally anticipated.
As mentioned, stock levels are lower than ever however buyers who need to buy are well and truly prevalent. This is causing the existing stock to move quickly and putting pressure on to make a move and make it fast. Due to this, prices are remaining stable and in Brisbane are 4.3% higher than they were this time last year (CoreLogic).
For some, the very thought of selling at the moment may be counter-intuitive. However, the simple message is that supply is low, and demand is high, balancing the market in favour of sellers. It’s hard to know what will happen in the coming months, which is why it’s better to act now.
Article by Daisy Hicks taken from Place Real Estate