REIWA CEO on seasonal peaks and troughs
While spring is known as the selling season, sellers may have better luck in autumn, according to the Real Estate Institute of Western Australia.
REIWA CEO Cath Hart said March was typically one of the most active months for sales in Perth, with sales numbers at similar levels or higher than November.
“Perth is already gearing up for a strong autumn,” Hart said. “The number of new listings, or stock coming on to the market, has been increasing over the past few weeks and is trending at similar levels to the past few years. The number of sales is robust and properties are still selling quickly, which is keeping the number of available listings at any given time at low levels.”
Peaks and troughs
Hart said reiwa.com data showed a regular pattern in the market.
“There are strong peaks in the number of sales in March and November and smaller peaks in May and August, with troughs of varying levels in between,” she said. “2020 was an exception, but that is not a surprise. It was the start of the COVID pandemic, with the real estate industry and community having to adapt to a range of new and strict restrictions.”
Hart said there were a variety of reasons for the peaks and troughs.
“On a weekly basis we often notice the number of sales declines when there is a long weekend or public holiday,” she said. “For example, there were 836 sales reported the week of Australia Day this year. This rose to 1,036 the following week. Similarly, you’ll often see troughs around school holidays and Christmas. People often go away or are busy with other things, so are less likely to be actively looking for a home.
“There is usually a peak in November as people often try and finalise their property transaction and move in before Christmas,” she said. “Activity then slows significantly over the festive season and into January. Data from reiwa.com shows sales usually start to pick up in February leading towards the March peak.”
Hart said another factor driving the troughs was the time it took to bring a house to market.
“People who buy in a peak may then have to sell their current home,” she said. “It can often take several weeks or even months before a property is ready to go to market. So people who buy in August might then list their home for sale in September or October, creating the next peak in November.”
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However, Hart said there was no right or wrong time of the year to sell.
Sell when you’re ready
“The market doesn’t stop; there are buyers at any time of year,” she said. “Each season has its advantages and disadvantages. For example, in spring or autumn the gardens often look great, showcasing properties to their best advantage, and there may be more buyers out and about. However, with more properties listed you face greater competition from other sellers.”
While there may be fewer buyers in winter, those who are looking are usually committed to finding a home, Hart said. There is also less competition from other sellers.
“The best time to sell is when you are ready,” she said. “Whatever time of year it is, speak to your agent about the best way to present your property and the best strategy to maximise the sale price.”
Perth’s housing market has remained stable despite the RBA’s aggressive rate hikes, with home values inching down only marginally in January.
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