The advantages of winter
Striking while the iron is hot isn’t always the best approach, particularly in the Australian property market…
Even at the best of times, the Australian property market can be a tough nut to crack.
With the traditionally busy Spring selling season behind us, and despite parts of the market slowing down, there are real opportunities for pro-active home buyers and property investors.
Both property transaction figures and anecdotal evidence from real estate agents suggest that the winter months are a much quieter time for the property market.
Recent figures released by SQM Research also suggest early signs of market retraction in some areas, with residential listing figures declining 4.2 per cent in April 2012 – and it is likely this trend will continue.*
“It is becoming more evident that the number of real estate listings has reached its peak,” SQM Research’s managing director, Louis Christopher, said. “Indeed, for a number of cities, stock levels are now trending down.”
But for many Australians, a declining property market spells one thing – opportunity!
It’s not hard to see why: fewer buyers means less competition, allowing you a bit more time to pick and choose the property you really want to purchase.
Vendors who are willing to take their chances during the colder months may find themselves increasingly frustrated by softer market performances.
This can be good news for you!
Striking when the market’s not so hot increases the odds of finding a vendor who is willing to shave thousands of dollars off their asking price in order to achieve a sale.
However, if you decide purchasing in winter is your best plan of attack, be sure to sharpen those negotiation skills and boost your buying power with a pre-approved loan.
Pre-approval gives you comfort that, before you have committed to buying a property, the lender will lend you an agreed sum.
Arming yourself with that pre-approved loan is not only a good measure to help you stay within your budget, it will also act as a deal sweetener during the negotiation process.
* SQM Research Stock on Market Figures April 2012, published May 2012