Surprisingly, it appears the answer may be no. Sellers think that spring is the best time to sell – but the evidence says the best time for your property isn’t so clear cut.
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What Is The Best Time Of Year To Sell Property?
Somewhat surprisingly, the best time to sell your property may be autumn, with most property transactions occurring during the month of March, followed by May.
Corelogic (formerly RP Data) analysed sales volumes between January 2000 and December 2009 and found that March was the busiest month for both units and houses across Australia.
Interestingly, volume does not change significantly throughout the year, with the level of transactions remaining relatively steady before the Christmas slow down over December and January.
An academic study by a senior lecturer at the University of South Australia, Peter Rossini, came to a similar conclusion. “While the so-called “spring rush” in the residential markets may possibly result in more human activity, there is no evidence to suggest, compared to summer and autumn, there are more transactions or higher prices“.
Peter Rossini found that the month of the year you sell your house appears to have very little bearing on the price achieved, with one small exception – during the winter months properties sell for approximately 1% less than other seasons.
Even though there is an increase in the number of listings in spring (as seen in the chart below), this is not supported by an increase in the number of sales. While vendors may be drawn to selling their homes as the weather improves after winter and the flowers start to bloom, it may actually be in their interests to hold off until after Christmas.
Listing in spring will put your property in a competitive seller’s market and at a time when buyers are not at their most active.
What Is The Worst Time Of Year To Sell A House?
This year, the spring period has been tough for sellers. There are currently more properties on the market advertised for sale than at any time over the last five years. The competition for that elusive buyer is intense, with many properties failing to even attract one registered buyer at auction.
This is due to a shortage of buyers and a slow down in the time it takes to clear existing stock, rather than an increase in the number of properties coming onto the market. Newly advertised properties being added to the market are approximately 11% lower than the same time last year (RP Data).
This is all particularly evident when recent data on the average number of days it takes to sell a property is reviewed. Witness the increase over the last 12 months in the average length of time it is taking to sell property in the chart below.
From the data available it appears listing in the new year and positioning your property to sell between March and May will maximise your chances for success. This will place your property on the market during a period when historically most sales have occurred and buyers are at their most active. Make sure you also do everything you can to increase the value of your property to boost the money in your pocket at the end of the day.
You’ll also want to look into how your local property market is going – is it a buyers market or a sellers market? Have similar properties to yours been sold recently? How much did they achieve? This, along with picking a good season to sell, will increasing your chances of achieving your goal.
When Is The Best Time To Buy Property?
Conversely, if you are looking to buy property, spring may be the best time. There is an abundance of choice (especially at the moment) and the competition from fellow buyers is relatively low. You may wish to also consider purchasing in winter, as Peter Rossini found purchasers secured property marginally cheaper on average during the colder months.
If you are considering selling your property, make sure you contact us before talking to an agent, we provide unbiased and free advice on who the quality real estate agents are in your local area. It’s all we do.
It is a currently a buyer’s market and now it is more important than ever to ensure you have the best possible agent selling your property.
Although there are traditionally more listings in the Spring months, properties rarely sell for more during this season. The time of year has little bearing on getting the best price for your property, however it should be noted that properties listed in Winter traditionally sell for 1% lower than properties sold in the other three seasons. Studies have shown that March is the highest selling month of the year – therefore it could be recommended that selling within Autumn is your best bet.
The property market is continually changing – it is best to sell your property during a seller’s market; that is when there are a high level of prospective buyers and a low number of properties on the market. Selling your property around March to May will see you entering a market that traditionally has a high number of buyers and sees the most properties sold.
Most properties are listed during the Spring months. When buying it is recommended to enter the market during these peak periods as there will be a high number of properties – you can negotiate a cheaper price for a property if sellers are competing for buyers.