How is winter likely to affect the market?
A question we’re often asked is whether the property market changes during winter. Traditionally, stock levels tighten during the cooler months. However, according to CoreLogic RP Data, in our core suburbs during the 12 months from February 2016 to January 2017, the number of listings was relatively stable from month to month, possibly a reflection of an already tight market.
Again, this year may be set to challenge the norm, with the economic aspect of the market potentially playing a larger role this winter than in years past. Given that we are spinning off the back of three years of growth, much of the media attention is focused on this run of price increases coming to an end. We’re already speaking with a number of potential sellers who feel that the market may be at its peak and this winter period may be the last window to capitalise before it potentially cools off.
When it comes to purchaser behaviour, the market is primarily influenced by interest rates, consumer confidence and auction clearance rates, which remain the drivers behind buying decisions. If interest rates increase this will have a larger impact on the decisions of buyers than the change of seasons.
However, the cooler weather does seem to bring a different mood. It can change the feel of a property and alter how buyers assess certain elements of a home. For example, a gravitation to homes with great outdoor entertaining spaces during summer may make way for cosy lounge rooms or suntraps during winter. Consequently, it really pays to play up your property’s features in accordance with the season in which you’re selling.
While the weather may be cooling off, we’re anticipating quite a bit of activity this winter, impacting the market at both an economic level and also a confidence level.
