By Rich Harvey, CEO & Founder, propertybuyer
Written by: Rich Harvey, CEO & Founder
propertybuyer.com.au
Click here to watch Rich's Video
This month we explore the often-overlooked advantages of December property buying, where the holiday season delivers exceptional buying advantages. In a quieter market reduced competition and unique opportunities provide a strategic edge for those considering a home purchase this festive season. Plus, I provide a wrap up of current market conditions.
The weeks surrounding Christmas, often witness a serene lull in the bustling world of real estate. As the focus shifts from dollars and deals to holiday cheer, the traditionally quieter period presents an overlooked goldmine of property buying opportunities.
Before we find out why December is potentially a good time to buy, let’s take a quick look at how the market is performing around the country. I recently conducted a webinar with Chief Economist from My Housing Market, Dr Andrew Wilson, and his key messages were:
- The housing market has seen a continued increase in prices during spring, with growth rates gaining momentum.
- We have a robust national economy, which is well-poised to absorb the impact of higher interest rates.
- The outlook for inflation is turning more ominous, with expectations of more rate rises.
- The ascent of interest rates is expected to put a constraint on price growth, affecting consumer confidence in the short term.
- Underlying demand remains well above supply, reflecting recent underbuilding and resumption of high migration.
- The housing market experienced a substantial rebound in 2023, defying widespread predictions of significant declines.
- Recent auction results demonstrate a seasonal easing of clearance rates, which is typical with the surge in end-of-year listings.
- House prices will finish significantly higher by the end of 2023, with many capital cities seeing an increase of around 10%.
In Brisbane our buyers’ agents are seeing very strong interest and activity across all price ranges and property types, driven by high inter-state migration, affordability, low stock levels and very low vacancy rates.
Melbourne has underperformed its long-term average and seems to have a Covid lockdown hangover, but has the right fundamentals for continued growth, providing an opportunity for counter-cyclical buying.
In Sydney our buyers’ advocates are noticing more caution at the mid-range prices $1.5m to $3m, very competitive buying amongst investors and first home buyers and also solid demand for luxury property above $3m (which is less impacted by interest rates). A few weeks ago, I represented a client at auction with 38 registered bidders - so the market is certainly alive and active!
In the first week of January, I will provide my predictions and outlook for 2024 as we will all be grappling with higher cost of living and mortgage repayments. But for now - here is how the property prices for houses and units finished up in 2023 around the country.
House Prices Wrap up for 2023
Source: My Housing Market
Unit Prices Wrap up for 2023
Source: My Housing Market
The December Buying advantage.
For prospective homebuyers or investors, the reduced competition during open houses and auctions in December offers a strategic advantage. With fewer contenders in the market, buyers can negotiate from a stronger position, enjoying a less frenzied shopping experience. Selling agents, with their workload easing, are more inclined to prioritize serious buyers, creating a VIP atmosphere for those on the hunt.
The holiday season urgency also plays into the hands of astute buyers and buyer's advocates. Motivated sellers aiming to close deals before the festivities commence often provide unique opportunities. Experienced buyer's agents well-versed in market dynamics can navigate the seasonal urgency, identifying signs of distress and securing properties at reasonable prices.
Conversely, some vendors prefer to wait until the New Year, creating a scarcity of listings for remaining buyers. However, the astute buyer, particularly those guided by a buyer's agent gain access to off-market and pre-market deals. Leveraging established relationships, buyers’ agents tap into networks to unveil hidden gems not visible on traditional real estate platforms.
Despite the festive slowdown, a buyers’ agent's expertise becomes invaluable in managing the nuances of December transactions. The best kept secret of enlisting a buyer's agent lies in the hands-off approach for buyers. With professionals handling the heavy lifting such as scouting opportunities, assessing them against goals, and negotiating on the buyer's behalf; buyers can relish the holiday season with the assurance that their property purchase is expertly managed.
December, often packed with holiday preparations and festivities, might seem an unlikely time to consider property investment. Yet, the rewards are substantial: regained weekends, freedom from constant property portal scrolling, and relief from the stress of negotiations and auctions.
The holiday season, marked by social events and year-end responsibilities, paradoxically brings heightened efficiency and focus for many. This sense of urgency aligns with the motivation of both buyers and sellers to conclude transactions before the Christmas deadline. Vendors seek certainty, while buyers crave direction and the opportunity to kickstart their plans.
Our team has countless examples of closing out deals in mid to late December where we’ve secured properties at discounts compared to current market pricing. I can personally attest to buying my own property on December 23 many years ago and snapped up a great deal.
In summary, here’s five reasons to consider buying in December:
- Motivated Sellers: Vendors seek to close deals before the year ends.
- Reduced Competition: Fewer buyers are actively participating in the market.
- Agents' Year-End Goals: Agents aim to wrap up the year with successful sales.
- Christmas Deadline: Both buyers and sellers are driven by the impending holiday.
- Reflection Time: December prompts contemplation of life plans and goals.
If you are serious about buying property, then December provides an opportune moment to turn your dreams into reality.
You can also consider our Appraise & Negotiate Only service if you're contemplating a property move. Whether you've found a property or need assistance estimating market value and negotiating the best price, our professional buyers' advocates are ready to guide you. Place Propertybuyer on your Christmas wish list and let us deliver the best gift of all—a dream property.
Wishing you a Merry Christmas and a New Year filled with joy and prosperity!
