Waiting on Spring to Sell

Should you be waiting on spring to sell?

During the winter months, when market conditions can be flat, vendors often choose to hold off on their selling plans until spring when both gardens and moods improve.

In “balanced” market conditions, 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 definitely 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.

Property owners also tend to be less enthusiastic to move during the winter months for reasons similar to those displayed by tenants, although broader market conditions have far more impact on selling outcomes than the seasons alone. It could be risky to hold off selling in winter with current market conditions being short on supply and high on demand.

The current market conditions indicate that sellers would be wise to seriously consider selling sooner rather than later this year. Property stock levels have increased slightly but median house prices across Perth continue to rise. Would-be sellers might be prudent to list now as the stronger buying activity evident in the March quarter and has continued into April, May and June.

A further consideration is that if many other like-minded sellers hold off going to market during winter, then spring brings with it an over-supply of property to the market, buyers become spoilt for choice and downward pressure on prices can result.

Buying in winter is a reasonable idea also, 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. Of course, any time of the year is a good time to sell if you are buying and selling in the same market conditions.

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.

These comments are the writer’s own and do not necessarily reflect the current opinions and policies of the Real Estate Institute of Australia.

By Hayden Groves
REIA Deputy President, REIWA President 2015 – 2018