Is June a great month to buy property?
While buyers and sellers remain obsessed with the ‘spring selling season’, buyer’s agents know that June is actually one of the best months to buy property.
A couple of years ago, economics and finance gurus from Swinburne, Griffith and Monash Universities analysed 20 years of sales data, and identified the best months to buy property. They discovered staggering seasonal variations in capital city sales prices – up to 13 per cent between the lowest and highest price months. For example, in Sydney, buying in June can save you up to $36,000 for a variety of reasons including vendors trying to offload properties before the end of financial year. So it definitely pays to be aware of this ‘seasonality effect’ when looking to buy a residential or investment property.
Coming into these quieter months of winter, there are fewer properties on the market to choose from, but this also means less competition from other buyers.
For buyer’s agents, the slower market makes it an ideal time to negotiate discounted prices and more favourable terms and conditions on behalf of their clients. If a vendor is choosing to go on the market outside the popular periods, it may mean that they need to sell urgently for a specific reason, or have had it on the market for some time.
Apart from price, there are other advantages to shopping for a home in the winter. You can see how the property is impacted by heavy wind, rain (e.g. potential flood areas), and other seasonal changes that may not be as obvious when the temperature is warmer. It also gives you a clear idea of how much the home will cost to heat during the colder months. If you are interested in beachside suburbs, the colder times are less appealing to the wider market and may result in a better deal.
Other Good Months to Buy In
Throughout the year, the main drivers of property price fluctuations include school holidays, peaks and troughs in job relocations, interest rates, tax time and the weather.
As we all know, January is quiet – many agents go on holidays and stock is tight but demand is low. For those keen on a particular property, buyer’s agents may be able to take advantage of the lack of buyers around to secure a better deal for you depending on the individual real estate agent and vendor’s situation.
By February, we are past the public holidays and ready to get on with our resolutions, and for many this means buying a house. You see the full effects of this in March and April so this is probably a good time to lay low.
While we have already outlined the advantages of buying in June, if you leave the property hunt until July you may not be so fortunate. In fact, in Sydney and Melbourne, winter is the most expensive month to buy property with July generally seen as real estate’s most expensive month. During this time a vendor may get as much as 3.2 per cent more for a sale. School holidays also mean more people looking for properties. The outcomes of tax returns encourage some towards a negatively geared investment property to take advantage of tax depreciation over the coming years.
By the time September and October come around, the gardens are blooming and the street appeal goes up. Buyers benefit from a wider range of properties than during winter, while sellers experience higher turnouts at open for inspections especially during the school holidays. The downside is that the market can quickly become flooded, with stiff competition and the emotions at auctions driving up prices. If you have a long wish list and a having a wide selection of properties is important to you, spring may just be the best time to start searching or selling, as you may enjoy better chances of finding exactly what you want.
December also presents opportunities as buyers, in our experience can enjoy a $28,000 discount compared to the year’s median because vendors are eager to sell before the end of the year. This may be due to them already having bought their next home and thus will be under a lot of pressure to sell before the real estate industry shuts down over January.
While each season and month of the year has its pros and cons, June is definitely one of the best months to consider buying property, especially with a buyer’s agent negotiating on your behalf.
If you are interested in buying a property in June, a Cohen Handler buyer’s agent can help you take advantage of the slower conditions to ensure you find the right property at the right price. Contact us now.