Is spring the best time to buy property?
The frost on your windshield is getting a little thinner in the morning. Trees are slowly turning green again. There’s even a little warmth in the sun.
It’s spring – a beautiful time of year when colours come back to nature and the temperature starts to increase before the glorious Australian summer begins. Lovely as it is, is spring the best time to buy property?
Let’s have a closer look at what goes on in the market during this season, to see if we can get an answer for you.
There’s more to choose from
Auction activity has been quickly ramping up as spring draws closer. CoreLogic RP Data reveals that the number of auctions in the capital cities increased from 1,747 for the week ending August 22, to 2,113 for the last week of winter.
This is in keeping with a yearly trend which sees more homes on the market during spring – meaning more property to choose from. With this in mind, you may be more likely to find something that fits your exact needs.
If you’re considering taking advantage of the wealth of choice that spring offers, the first thing you should do is find out how much you need and how much you can borrow. This is far easier with the help of an experienced mortgage broker.
Clearance rates are higher
CoreLogic data also shows that auction clearance rates increase during spring, meaning a higher proportion result in a successful sale. This year, rates have been as low as 60 per cent, but they are steadily climbing and may soon breach the 80 per cent mark.
As a result, if you’re looking to secure a home loan and take another step up the property ladder, this may just be the time. Higher clearance rates could mean you’ll be more likely to walk away with the property you really want, so you may not have to compromise.
The bigger picture
Property is cheaper during certain months of the year, according to Swinburne data. In Sydney, houses are cheaper to buy in June, while in Melbourne they are most affordable in May.
While this could be worth taking into consideration, the differences will be minor and it’s more important to buy when it’s the right time for you. If you’re not sure whether you’re ready, or you’re in need of advice, let one of Smartline’s mortgage brokers guide you from approval right through to the moment you pay off your loan.