Flowers and trees aren't the only things blooming during spring. The property market often comes to life and shows its colours during this time as well, boasting year-high auction numbers and clearance rates.
Because of this, Aussies all over the country flock to auctions and open homes, caught up in the spring time property rush. So are the warmer months the best time to upgrade the family home or buy your first home? Perhaps and perhaps not. Let's have a closer look at what's goes on in the market and see if we can come to a clearer answer.
More to choose from
If you're after a 7 bedroom house, built in the 17th century and painted lime green for between $400,000 and $400,010 (or something else as specific), then spring may just be the time to search. CoreLogic RP data tells us that historically, auction numbers reach a peak during this period – exceeding 3,500 auctions per month at least once every spring for the past three years.
This means that there will be more homes to choose from on the market, and you may be more likely to find something suitable.
There may be more competition
There are more homes being auctioned during this period, but also more people searching for homes. This is evidenced in CoreLogic's auction clearance rate data, which generally shows an increase at the start of spring. This means a higher percentage of auctions result in a successful sale and indicates that more people are buying during this period than others.
Other than a more crowded auction, this may also mean that prices are higher. More competition and more demand, generally pushes up prices as buyers continually bid and group psychology leads to a higher sale price.
Historically, auction numbers reach a peak during the spring period.
Prices may be higher – or they may not
The above logic dictates that a home may cost more to buy during this period, a claim which is most likely true to a degree. However, spring generally does not result in the highest sale prices of the year, according to data from Swinburne University of Technology on the most expensive months in which to buy property.
In fact, July is the most expensive in both Sydney and Melbourne – and the cheapest in these cities are June and May respectively. With this in mind, it's essential that you focus more on figuring out when it's the right time for you to buy property, rather than looking closely at the seasons and time of the year.
When the time is right for you we can help you figure out which loan is suitable for you, and how you can enter the market with ease.