What’s Happening in the Market?
The nights are getting shorter, and the days longer (or at least so they say), is it too late to take advantage of the current market?
It’s common knowledge that people perceive the warmer months in spring and summer to be the best time to sell a home.
In spite of this, figures from CoreLogic RP Data reveal that while the number of homes on the market do drop during winter, the auction clearance rates generally remain the same as or higher than their spring/summer counterparts.
With this in mind, one could assume the cooler months could be an ideal time to buy and sell, as there is reduced competition.
So why don’t you break away from the sheep and put your home on the market before it’s too late?
Here’s a few incentives for selling your home in winter.
Favorable Interest Rates
At the August 4 Reserve Bank of Australia (RBA) meeting, Governor Glenn Stevens announced the official cash rate would be staying steady at 2 per cent.
This means the historically low interest rates from lenders that are making mortgage repayments easier to manage are here to stay – at least for another month. But as they say, all good things must come to an end!
The next decision from the RBA is in fact due to happen on the first day of Spring (September 1). So many buyers may be looking to buy soon and lock in the low interest rates.
Less on the Market
If the statistics from CoreLogic RP Data are anything to go by, you still have time before the birds and the bees come out for the frenetic spring rush.
For the week ending 2 August, there were only 1,944 homes that went to auction in our capital cities, significantly lower than prior weeks.
The clincher, though, is that the clearance rates throughout winter have been at record highs, especially in our capital cities.
What Does This Mean to You?
A lower clearance rate indicates less competition, meaning your property will attract more attention and put you in a better position to negotiate your desired price.
On the other hand, less property on the market will make the search for a buyers dream home that much easier!