We talked about the benefits of selling last winter, but it’s fair to say the situation has changed and a re-evaluation is sorely needed. Forecasts for the year have so far proven to be true or even more positive than first thought, and buyer demand has finally been brought in sync with the rest of the country, as well as investor activity finally starting to increase again following the end of the rental moratorium.
While our last winter selling article was focused on convincing sellers that panic was not warranted during an unprecedented time, rather than promoting a genuinely growing market, traditional seasonal behaviours tend to remain. Changeover buyers can sell on delayed settlement terms in winter, while setting themselves up for a spring buy when even more stock is expected to come to the market. As we’re still currently waiting for our stock increase to reach its peak, winter still remains a great time for more serious buyers who might be more prepared to compromise on their preferences. Spring might be peak season, but as a result, it’s also primed for tyre kickers and window shoppers among a big bunch, whereas winter buyers are far more likely to have finance approved and be ready to make a bid.
Going back to today’s market, the news couldn’t be more positive! As mentioned, buyers remain historically competitive, with median selling days still sitting at 15-year lows; around 14 days as of the end of May! This coupled with home values going up 10 per cent over the last 10 months makes for some optimistic reading. It also seems like that optimism is finally reaching vendors, as although the market remains competitive, listings are starting to increase, with May’s figures showing listings reaching above 9000 for the first time since November 2020.
These great winter opportunities don’t just depend on your listing being somebody’s forever home either. The end of the rental moratorium was always expected to renew investor confidence, but the last few months have provided the numbers to back it up. ABS statistics have shown Investor finance from April has increased 164 PER CENT compared to the same time in 2020, as well as being the best investor finance figures since December 2015, so there’s every chance that your home could be on their hit list. The figures go hand-in-hand with our sharp rent increases throughout May, with 16.7 and 14.6 rise in house and unit rents respectively.
Even when eliminating the exception of last years COVID-affected winter market, the conditions are still the most promising they’ve been in years regardless of the time of year. We all rightfully feel the need to consider external factors such as the weather and moods of buyers when selling in the gloomier months, but nonetheless, we imagine this historic recovery will have every keen buyer donning the jackets and scarves!
Sources: reiwa.com.au