26th June 2023 / Sarah Lowry: Is Winter the Hot Time to Sell This Year?

If we were perhaps unsure in the first couple of weeks in June (or maybe hopeful!), the current chilly temperatures leave no doubt that we're in the depths of another cold winter. It may be a great time to head to the ski slopes, or simply delve into the latest Netflix marathon, but is it a good time to sell real estate?

We have certainly seen strong bidding at auctions of late, with multiple weekends with a 100% clearance rate, or very close to, and well above industry averages.

The REA Group reports that over the first five months of 2023, national property prices increased by 1.5%. Not only have prices begun to rise this year, but sales volumes have also increased significantly. Sales in May 2023 were just 0.6% lower than last year, and higher than both 2019 and 2020 (albeit they remain lower than 2021 volumes). Although prices and sales are increasing, we are yet to see a rebound in the supply of new properties coming to market.

New stock coming onto the market is much lower than last year, with the number of new properties listed for sale in May 2023 being 16.8% lower than May last year. Ideal selling conditions are when prices are increasing, demand is either strengthening or strong and there is little competition for sale, which is the market we are currently seeing.

Of course, if there was a significant uplift in the volume of properties listed for sale, buyers would have more choice, and may be able to negotiate greater price discounts than they currently can.

During this time of year – the winter selling season – is when many vendors traditionally stop listing properties for sale, choosing to wait until the popular spring selling season.

If potential vendors hold off until spring, there is a possibility there will be significantly more stock available. Over the decade to 2022, there was 19.7% more new listings on average in spring than there was in winter (with last year being the only exception).

More stock for sale in spring leads to more negotiating power for buyers and could see the recent rebound in prices abate. In fact, auction clearance rates typically fall throughout spring, as auction volume increase.

The takeaway? Property prices are rising NOW, sales volumes have increased significantly compared to late 2022 and there is very little stock available for purchase. If you're considering selling in the next six months, it may be worth considering bringing your plans forward, to beat the traditional spring rush.

Source: www.realestate.com.au/insights