Consider sale time carefully
During Perth’s winter months, market conditions can be flat because of the colder weather and rain.
As a result, vendors often choose to hold off selling their homes until spring when the weather and dispositions improve.
In a “balanced” market, when opportunity is evenly spread between buyers and sellers, deciding not to sell in winter is probably not such a bad strategy.
Improved weather conditions will often benefit a garden’s aesthetic, adding value to a property, and a more positive atmosphere will generally emerge once winter ends.
On the other hand, it would be foolish to avoid selling your property in winter if market conditions were short on supply and high on buyer demand — particularly if future trends indicated a move back towards market parity.
In today’s market, where conditions are softer, buyers and sellers are likely to have more time to make a selling or buying decision as the market becomes more equitable and balanced.
The residential rental market, in particular, tends to “nod off” during winter, with notably fewer tenants making inquiries for vacant properties in the cooler months.
REIWA statistics also suggest rental vacancy rates move with the seasons, even during periods of high demand from tenants.
It is worth noting, however, the 2009 artificially stimulated “mining boom” market, and the subsequent slowdown, have muddled more recent vacancy rate statistics. Now, any trend in the vacancy rate figure is overridden by stronger market forces like falling interest rates, consumer confidence, population trends and Government policy.
For sellers, however, broader market conditions have far more impact on selling outcomes in WA than the change of seasons does.
One important consideration for would-be sellers in today’s market is the thought process of like-minded sellers.
If they, too, are choosing to hold off listing their property for sale during winter, then spring brings with it an oversupply of available stock and competition between sellers increases.
In the current climate, the last thing the property market needs is a surge in the volume of houses for sale, as this would likely create further downward pressure on sale price results.
While seasonal trends have some impact on sales and rental activity in WA, overall it appears any time of year can be a good time to buy and sell.
This is especially true if you are buying and selling in the same market conditions.
If you are unsure whether now is a good time to buy or sell, speak with your local REIWA agent to help you make your decision. Hayden Groves is the president of the Real Estate Institute of WA.