December 2014 - Why Buy Property Before Christmas?
By Rich Harvey, Managing Director propertybuyer
With Christmas around the corner, should property be on your shopping list? Is there an opportunity to capitalise on this busy time of year while other buyers are distracted to nab a good deal? And how will the market perform in the coming year....
In this edition we look at:
- Why Buy Property Before Christmas?
- Client Stories
1. Why Buy Property Before Christmas?
December is a wonderful time of year as we anticipate celebrating Christmas day, look forward to an extended holiday, work parties, school finishing and starting a New Year. But it is also an incredibly BUSY time of year and many long term priorities get squeezed out. So being organised pays huge dividends this time of year.
With only three weekends left before Christmas, we are seeing a lot of sellers taking advantage of market conditions. Sydney property prices have performed very well this year and Domain Group senior economist Dr Andrew Wilson suggests we are on track for an 11% pa growth rate for calendar 2014. In 2013 we saw dramatic growth of 16% pa (much of which was catch up growth) and Wilson predicts we should see a more moderate growth rate of 7% in 2015.
The Christmas season is a great time to buy property as it creates a deadline for buyers and sellers to make agreement on price. Sellers are more motivated to secure a sale before Christmas as they want to move forward with their plans. Buyers are similarly motivated as they want to lock in a purchase and know where their new abode for 2015 will be and get settled in January.
The funny thing is we all work better when a deadline is involved - especially when a holiday is pending at the end of the year! Deadlines bring clarity to decision making. They help us focus in on what is important and what needs to get done.
In the current market, there are a larger number of new listings coming to market which is giving buyers more choice. A record number of properties have been auctioned in Sydney over the past few weekends. However, I don’t expect to see prices declining with increased listings. There are plenty of auction bridesmaids waiting in the wind ready to bid when the right property comes up. Auction clearance rates have dropped back a little from 80% to around 75% with the increased supply, but price are still very strong.
The other thing that happens at this time of year is the speed of transactions. Properties are being sold quickly. RP Data report that the current days on market for Sydney houses is 26 days and 25 days for units. So buyers do not have the luxury of sitting back and “waiting to see what happens”.
Having observed the Sydney property market for several cycles I have noticed that Sydney has strong growth spurts then tapers for a longer period of slower growth. We are seeing a slight tapering in Sydney growth and flattening in other capital cities. Sydney will reach its peak eventually - but looks set to have another 7% rise in the year ahead fuelled by low interest rates and competitive buying.
There is always some uncertainty about what is going to happen next year in the economy and how this may impact the property market but as always, the trick to buying well is RESEARCH and SPEED. You have to know the local market extremely well and to identify what is good value and what is over the top. And you need to be prepared to make an offer and move quickly when the right opportunity arises.
One way to do this is to engage a buyers agent to search and negotiate on your behalf. The buyers agent will provide independent advice and knows how to make the right moves to negotiate the lowest possible price. In addition to the full search option, we offer an “appraise and negotiate only” option. This will give you confidence you are paying the right price and also the upper hand in negotiations with an agent.
In summary, buying before Christmas is an opportunity to get ahead of other buyers that are distracted by the silly season, take advantage of motived vendors and lock in your property plans for the New Year.
If you'd like to get the upper hand and secure your next property over the Christmas season or New Year, call my friendly team of buyers' agents on 1300 655 615 or + 61 2 9975 3311 today to discuss your requirements or email us your buyers wishlist.
Rich Harvey is founder and Managing Director of www.propertybuyer.com.au, Australia's most awarded Buyers' Advocates. Propertybuyer helps property investors and home buyers search and negotiate the right property at the right price, everytime. Visit www.propertybuyer.com.au or call 1300 655 615.
2. Client Stories
Here is some feedback from our a few of our happy clients last month!
"propertybuyer solved our concerns...."
Buyer type: Homebuyer
Location: Northern Beaches, NSW
To secure our chosen property at a reasonable price. I felt very uncomfortable about doing it myself. We are new to the area and did not have a feel for values in the local market. I felt unprepared to enter negotiations. I was worried about irrational pricing, strong competition, negotiating tactics and inexperience in the local market.
Prior, Matt was on the phone to me for about an hour after I had signed the forms with propertybuyer. He was calm, rational but moved very efficiently going from property inspection to finalising negotiations in 2 days. The entire family was ecstatic. We couldn’t believe how quickly it all happened. Most people try to analyse the cost to see if they are getting value. They are missing the true value of the service provided which is saving tens, maybe hundreds of thousands. Sometimes you need to put pride to the side. If you don’t buy and sell every week then chances are you will be on the wrong end of negotiations. I have no doubt it was the best decision we made before buying.
“I have no doubt it was the best decision we made before buying."
Buyer’s Advocate, Matt Corbett
Peter had found an ideal home for his family but he was unsure of the value and uncomfortable in the negotiation process. Unlike many, Peter was smart enough to know his limitations and hence engaged our services. We inspected the property within 24 hours and completed our appraisal the following day. We then commenced negotiations and simultaneously organised a pest and building inspection the following morning before submitting an unconditional contract and consequently securing the property. Peter and his family were thrilled.
If you are interested in any of the above please contact Jason Low (Manager- Client Relations & Strategy) 1300 655 615 or 02 9975 3311 or email your enquiry to firstname.lastname@example.org.
To review the full details of these opportunities you will need to sign a simple confidentiality agreement which protects our interests in the property. If you purchase a property, a fixed sourcing fee will apply.
We look forward to assisting you.