Buying Over The Christmas Period
Property markets around Australia have been known to grind to a halt during Christmas and January. Generally, people are preparing to spend time with family or have travelled away on holiday somewhere.
Not only that, but the real estate industry and the professions that it overlaps with are usually pretty quiet. Real estate agents are taking a break between Christmas and Australia Day after a hectic spring selling season, while not much seems to happen in January for solicitors, conveyancers, accountants, financial advisers and others that assist in property transactions.
If you happen to snap up a property in this period, you might like to try and negotiate a long settlement period to make sure the professionals you need are back at work before you have to finalise the purchase.
But as long as you are aware of all this and have contingency plans in, there are still deals out there to be made.
How does this Christmas stack up to other years?
After an exhausting two years of rolling lockdowns, restrictions on seeing family and financial stress, many Aussies will be planning to party it up and enjoy the return of some of their freedoms over this festive season.
But the other thing that lockdowns did was create a pipeline of properties to be sold that only began to come on to the market in late spring.
Capital cities like Sydney and Melbourne are now finally seeing properties pass in occasionally at auction, because there are more listings and buyers are less likely to be paying the ridiculous prices that became the norm over the first three quarters of the year. And while some of the other capitals are experiencing ongoing booms, there is still plenty of upside for Brisbane and the rest of south east Qld, while Adelaide and Perth are showing promise too.
December brings opportunities for bargains
Some real estate agents are saying they will be working right up until Christmas and they may have to, to get their listings sold.
When Christmas approaches, the properties that are on the market are likely to have first been listed in spring selling season, which means they have been lagging for a while. The owners of such homes are more likely to agree to a discount price to get the sale done before the holidays. They know that if they are still on the market in the new year their property will appear stale and they will be up against a fresh wave of listings.
Less competition from buyers
A lot of buyers will be experiencing fatigue after a tough year of struggling to find properties they like and then being outbid on those that they do try for. This will mean that a lot will withdraw from the market and recharge over the holidays before trying again in the new year. Article
So while there may be fewer properties on the market to choose from over the holidays, there will also be fewer buyers to fight it out with for what is available. Competition is what drives prices out of reach for buyers and can be the difference between a positive or negative cashflow for investment properties.
If you see a property you like and have a price in mind that makes it a worthwhile deal, contact the real estate agents and let them know you’re serious and ready to transact. Agents are more likely to consider genuine, hassle-free offers for a property if they aren’t having their door bashed down by eager buyers.
For an agent, an extra $10,000 or $20,000 on a sale price won’t make much difference to their commission and they are likely to advise their vendors to accept your competitive offer and get the deal done.
If you would like help with buying over the Christmas period, speak to our Investor Relations team to see how we can help you.