For many buyers, all they want for Christmas is a home! There is typically a mad rush leading into Christmas with both buyers and sellers wanting to secure a deal before Christmas but once the markets pass Christmas, the period up until New Years is traditionally a very quiet time with real estate agents and other professionals in the industry taking a break whilst the market slows down until well into the New Year. What this means is, that if you are a savvy investor there are multiple factors that are unique to the festive season that can help you secure the right property for your needs as long as you understand the markets and do your research.
So, what happens to the property market during the Christmas period?
Leading into Christmas
Leading up to Christmas is one of the busiest times of the year for Real Estate. It seems that sellers really want to have their property sold by Christmas and a new home is on many buyers’ Christmas wish lists. Many sellers don’t want to risk waiting for the new year to sell their property, as there will be more properties (meaning competition) entering the market. At the same time, the buyers are often pre-occupied with planning holidays and Christmas festivities as well as tightening their budgets that also impacts the activity in the property markets.
If you are looking to buy, this is a great time to buy property as vendors become increasingly nervous and desperate to sell their property before the shutdown period and so become more flexible with price and contract terms.
Sellers
There are some difficulties in selling a property leading up to and just after Christmas as well as the uncertainty around demand on buyers as they become distracted with pre-Christmas festivities and planning their vacation period.
The main reason that sellers don’t want their properties sitting idle during this time of year is because when the markets open up in the new year, their property will appear as an old property with long days sitting available for sale which gives the impression there must be something wrong with the property, alongside the new properties that will enter the market increasing the competition between sellers. Another reason is that sellers don’t want to sit through the New Year not knowing how long they will be living in this property, it feels like they have to hold onto their property for another year due to the calendar ticking over- sometimes it’s just a mental game!
Buyers
For the reasons mentioned above, the period leading up to Christmas and New Year can create some unique investment opportunities and can be incorporated into a clever purchase strategy for investors who plan to stay active in the market.
The biggest advantage for buyers is the eagerness for sellers to finalise a deal before the end of the year. Sellers do not want their property sitting on the market during the shutdown period making it look like a stale property so this creates a rush and urgency for sellers to offload their property.
Investors can nab a bargain with less competition as other buyers may be wary about managing and organising finances during this time. But, keep in mind that solicitors, brokers and banks will also be busy with a high influx of applications and clients pushing to settle before Christmas. These professionals may also close their offices during the Christmas and New year period which can cause delays in exchange and settlement.
Advantages for property buyers during the Christmas period:
- Sellers become desperate to wrap up a deal before the end of the year
- Sellers become more flexible with price and contract terms
- Less competition from other buyers as they become distracted with Christmas festivities and holiday planning.
Disadvantages for property buyers during the Christmas period:
- Professionals become busy and go on holidays so the process can be slow with solicitors, conveyancers, mortgage brokers, and banks all trying to wrap up settlements for the year.
- Less choice as some sellers may choose to hold off selling altogether until the new year.
What happens in the property market in the new year?
With all the Christmas and New Year distractions out of the way, we see the property market rebound as buyers flood the market in January and February prepared to buy. This creates more competition if you are a buyer making it more difficult to negotiate on price.
Typically, we will see new sellers enter the market increasing supply and options for buyers as some sellers wanted to hold off until the new year before listing their property.
Whether you are buying a home, or looking for an investment, keep in mind that the property markets are run by supply and demand which will vary depending on the market you are trying to buy in. It is important that before you add property investing to your Christmas to-do list, that you study the movements of the market and engage with professionals, to determine whether this is the right purchase strategy for you.
If you are looking for a buyer’s agent to assist you with purchasing a home or investment property in Sydney, Brisbane, Newcastle, or a local Melbourne buyers agent, as well as SA, TAS, ACT, VIC, NSW & QLD please get in touch with Lloyd Edge and his team at Aus Property Professionals here or give us a call on 1800 146 837!
