No Winter Jitters Here
Are you watching the housing market and wondering how the winter months are tracking?
If you’re like most Melbournians, you’ve heard a lot of hype in the media about what is and isn’t happening in the real estate sector, and you’ve been left wondering what’s actually going on.
Well, let’s take a look…
What’s the Market Doing in Winter 2022?
Winter isn’t typically a busy season in the housing market, but once again, 2022 is throwing up some surprises!
According to PopTrack’s report published in July 2022, the winter season has been off to a busy start. In fact, across Australia’s capital cities, new listings for June were up by 5.9% compared to the same time last year. And in the rural areas, new listings in June were up by 2.5% month-on-month.
So, despite entering the typically ‘quiet’ season in the real-estate world, this year has proved to be the busiest winter season for over a decade for our capital cities.
But don’t just take our word for it, let’s ask the pros…
According to REA Group Economist Angus Moore, the property market across the country is remaining “reasonably busy”. And in June, we saw more new listings come to market: in fact, it was the highest volume of new listings on realestate.com.au in June to start winter since 2011!
As Angus Moore says, it’s “… a pretty busy start to winter, all things considered.”
It’s an accepted thing that the real estate market is a bit more sluggish during the winter season, but why is that? Ok, let’s dive in…
Why is Real Estate Slower in Winter?
People are creatures of comfort, and when it’s cold out, most of us enter hibernation mode, to a certain extent!
Hey we get it: when the temperature drops to single digits and it’s raining (or snowing), packing up and shifting house isn’t the most appealing idea – we’d all rather sit by the fire with a mug of hot chocolate and our favourite book…
So, it follows that naturally, there are less properties coming to market during winter and less activity in general.
But that doesn’t mean that the cycle stops entirely – there are always folks who are on the look-out for new properties, and always some who are on the move.
Is Winter a Good Time to Buy?
Yes! Although it mightn’t be popular, there are several reasons that we believe that winter is an excellent time to purchase a property. Here’s some reasons why:
You Might Get the Better End of the Deal
If you’re prepared to brave the elements, chances are there won’t be so much competition, which means the purchase prices could be in your favour. If a seller is keen and there aren’t many interested parties, you might be able to negotiate to your advantage.
You Can See for Yourself How Well the Property Performs in Winter
Wind, cold, rain… there’s no time like winter to accurately gauge how well a property performs in the cold. And that’s really important, especially in Melbourne!
What type of heating does the property have? And how effective is it? Is the property draughty, and are the windows all well sealed? And what about outside drainage? Are there low-lying lawn areas that turn to mush after rain? Are the entrances shielded from the weather?
Your Finance Application May be Approved Faster
If you’re arranging external finance, there’s a fairly good chance that you’ll get your application put through faster during winter.
The reality is that during the warmer months when real estate activity goes crazy, mortgage brokers get swamped with applications and yours is likely to take longer to get processed.
Why is the Rental Market so Tight at the Moment?
The reality is that during 2020 and 2021, a lot of investors sold their properties, which means that there are fewer rentals to go round at the moment.
However, if you’re looking to rent, it’s not all doom and gloom: compared to last year, the amount of investor activity across the country has noticeably increased, although the market remains very tight.
The reopening of our borders now means that international students and migrants are once again coming into the Land Down Under, and competition in the rental market is high. Compared with this time last year, the number of searches for rental properties on realestate.com.au coming from overseas has increased by over 70%!
It’s interesting to note that the popularity of smaller, two-bedroom rental units has risen, while larger rental homes have become less sought after since the onset of the Covid pandemic. Although there are probably many reasons for this, one theory behind the shift in consumer preference is that folks have come to value their own space rather than a shared space, especially while isolating or working from home.
So, for a quick summary…
While it’s cold outside, the real estate sector definitely hasn’t caught the winter blues. In fact, we’re buzzing with good vibes about this year’s winter season.
Across Melbourne, buyers and sellers are still active. There are plenty of new listings this winter, while the rental market remains competitive.
At Love & Co we’re helping our clients find homes that suit their needs and their budgets – rain, hail or shine. So, contact us today and let’s get the ball rolling for your new home.