Purchasing with the seasons: when is the right time of year to buy a property in Melbourne?

With 2019 just kicking off, this is a good opportunity to act on your New Year’s resolution of finding a new property, whether it be a new home or an investment. However, with the market supposedly so volatile (according to the mass media) and so much unnerving news about the possibility of a market crash, when is the best time to buy a property in Melbourne?

Before launching yourself back into the real estate ruckus, its best to arm yourself with as much information as possible about the best times for sniffing out a great bargain. A huge factor in the buying-selling see-saw can be the seasons. The weather and seasons can play a big part in how we behave and in turn how we view the property market – its pure human nature. You often hear people talk about the “Property Cycle” but rarely do they talk about the actual natural cycle of the seasons and how they can have a significant impact on the market.

Let’s break down each season and give you an idea on which season is best for you when purchasing a property.

Spring (September, October, November)

Is the grass greener during\spring? This time of year ushers in new life with blooming flowers, warmer temperatures, and extended daylight hours – and with it comes a renewed interest in properties. ‘Tis the season of rebirth and buyers and sellers alike will flood the market in the hopes of achieving the Great Australian Dream.

You may have heard your neighbour, friend or family member mention that spring is the best time to sell a property, but does this ring true if you are on the opposite side of the fence and are looking to buy?

First things first, there is a clear correlation between spring and the increased amount of property listings in the market. You’ll be spoilt for choice. But just like you, there will be many buyers emerging from hibernation looking for property to purchase. Like bees to honey, the flood of new real estate being listed will inevitably draw more and more buyers to the market in the hopes of finding their perfect property. With more buyers in the market, there is increased competition which often drives up the selling price up.

As a result, expect to pay more for properties during this stage of the yearly cycle. This time of year is a seller’s market but the upside is there will be more properties for you to choose from and you will have a greater chance of discovering your dream home.

Summer (December, January, February)

Summer is often called ‘the Silly Season’ – and for good reason. With children on school holidays, the unusually high amount of social engagements, and Christmas around the corner, the mood during these months are upbeat to the point of giddy. As such, it tends to see a lower demand for properties.

Just like spring, there are still a lot of properties for sale just before Christmas and you may find negotiations easier as sellers are keen to offload their property before the year is over. After Christmas is over and the New Year ushered in, we see another great opportunity to snap up a bargain in early January as many sellers that were hoping to sell their properties the previous year are left wondering when theirs will sell. And as everyone is still on their holidays, more often than not, you will be the only one at the negotiating table, giving you greater leverage to get the best price.

One thing to be careful of is the summer sunshine (quite literally) – with great daylight lighting, properties may seem much more appealing. This may sound paranoid, but it can be a real psychological lure. Ensure to stick to your plan and don’t get sucked into the warm weather and idyllic setting when at viewings. During these months, high demand will boost prices but will still provide you with a better chance of finding the right home at the right price when compared to Spring.

Autumn (March, April, May)

Typically during the autumn months, we start to see a decline in the amount of properties that are on offer. But at the same time, you’ll likely see a similar drop in competition as buyers from the previous seasons have secured property or are taking a break from their search. This season also coincides with the school holidays where many families choose to go on vacation with their kids. This is great for you as families make up a large chunk of the buyer pool (especially for owner-occupier homes) and, due to their circumstances, they can get very competitive as it all gets pretty high stakes when emotions get involved.

If you can hold out, this time of the year is ideal for you when looking to purchase a property. With less competition, prices tend to be less inflated by rival buyers but there also is the risk having fewer properties to choose from. Generally speaking, sellers will be more open to negotiation during the autumn lull.

Winter (June, July, August)

When winter comes, there is no need to run back to your hibernation hole like everyone else. It is true that there tend to be much fewer properties listed for sale, but this could actually be a great time to buy especially if you have done your research and are savvy.

First, let us get expunge one fallacy from your mind: fewer properties does not mean no . There will still be listings and viewings to visit – just not in the volumes that you might see during warmer months. But don’t fret! This is a good thing. Yes, there are less properties for sale, but there are also far fewer buyers to compete against. And as said before, less competition means lower prices for you if you have the knowledge and confidence to go head-to-head with real estate agents.

Sellers generally do not list their properties during winter if they can help it. So sellers that have a property listed during these months either were unsuccessful in their campaigns during previous warmer seasons or have landed in a situation where they are wanting a quick sale to get some fast money. This means that you will have a greater opportunity to negotiate as sellers will be more open to compromise.

If you are on a tight budget or just want a bargain winter is the time for you. With less sellers and less knowledgeable buyers around, you will find this slower market to be full of bargains and quick sales if you know what to look for.

At the end of the day, the season is only one factor to consider when looking to purchase a property. And no matter what season there will always be plenty of properties that will suit you if you know where to look and what to look for. So really the best time of the year to buy a property is whatever time of the year that suits you. If you aren’t in any rush, taking the above seasons into consideration will only help increase your chances of securing the right property for the right price.