Con­sider sale time care­fully

Pilbara News - - Property - Hay­den Groves

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.

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