Something strange happened in the property market this year. All through winter, while most of us stayed indoors, low interest rates presented a springboard for investment opportunities, and through the depths of winter the property market remained strong.
As we pass from winter to spring, all eyes are on property hotspots, Melbourne and Sydney. These cities have experienced unprecedented growth, with property prices rising by 15.2% in Melbourne and 18.4% in Sydney since June last year.
Spring is the time to predict how the property market will shape up for the rest of financial year. We’re in a unique position right now, auction rates are actually trending down and it looks only a matter of time before interest rates rise.
All this means the heat could come out the market, but not before a bumper spring selling season.
Advantages of spring selling
Last year, LocalAgentFinder recorded the springtime as the busiest season for property sellers. Property registrations on the real estate comparison website spiked 36.8% during September, October and November, compared to the rest of the year.
Another benefit of selling in is the weather; it’s neither too hot or too cold. Buyers seem to shake off the winter blues and are on the look out for new investments, while for property sellers, spring is a fantastic time to show off property in the best light.
Keeping an eye on Melbourne and Sydney
Melbourne: Spring continues to look optimistic for Melbourne, it will remain a sellers’ market even if the property boom we have seen over the last year subsides slightly.
Huge growth in the property sale price has been seen across Victoria’s capital in the last year. Standout areas include Middle Park, a suburb next to well-known St Kilda, where the median sale price has increased by 15.2 % over the last year.
Melbourne’s auction market is looking good heading into spring; high average median sale prices haven’t deterred buyers, as properties continue to be snapped up at auction. Although recent clearance rates haven’t been beating the 83% high Melbourne reached in May, the latest auction clearance rates have been sitting around 76%, much higher than last year.
Suburbs to watch over spring include those closest to the city centre with lower median sales prices. Footscray and Kensington meet this criteria, so it will be interesting to see how their local property markets play out in the upcoming months.
Sydney: In the last year the average median sale price in Sydney hit over $1 million, and auction clearance rates were way above 80% .
After an intense period of growth, there has been much speculation about whether house prices will start to stagnate in the coming months. Auction rates have slowed off to a around 76% in the last month, causing concern that Sydney might not see a return to the high rates witnessed earlier this year.
Top suburbs to watch in spring are those in urban areas close to the CBD with lifestyle benefits but have slightly lower than average median sale prices. Western Sydney also has good potential with Tempe and Dulwich Hill offering promising investment options.
Selling isn’t all about the season
There are pros and cons to selling a property in all seasons, but the only real right time to sell a property, is the time that is right for you.
Autumn is another great period for property sales and market activity, and can be a less competitive time to attract buyers than spring. The weather is still good, and long holiday weekends like those around Anzac Day and Easter give potential buyers more time to view properties and attend auctions.
While the cold winter and the hot days of summer are often touted as ‘difficult’ times to sell a property, there are some benefits to selling in these quiet times; often there is less competition for marketing home opens and advertising for auctions.
If you’re marketing a home over Christmas, put up a Christmas tree, when it’s winter make sure your heating is on. In spring, the weather is on your side with gardens green from winter rain, and make sure you give the house a solid spring clean.
Michael Banks is the CEO at LocalAgentFinder, Australia and UK’s market-leading real estate agent comparison service. With over a decade’s experience in property-tech and a background in strategic partnership management, Michael specialises in building digital solutions that simplify and strengthen customer engagement in real estate.
You can help us (and help yourself)
Small and medium businesses and startups have never needed credible, independent journalism and information more than now.
That’s our job at SmartCompany: to keep you informed with the news, interviews and analysis you need to manage your way through this unprecedented crisis.
Now, there’s a way you can help us keep doing this: by becoming a SmartCompany supporter.
Even a small contribution will help us to keep doing the journalism that keeps Australia’s entrepreneurs informed.