The Best Time To Buy:
When it comes to buying property, the best time to buy can depend on a number of factors.
The time of year, market conditions and what’s happening in the wider economy can all affect whether or not it’s the right time to take that leap.
Move with the market:
Traditionally the real estate market has worked to a seven year cycle. This means that properties may see little to no growth over a period of time in that seven years and then slowly begin to see growth until it hits a peak, much like what we have seen over the past few years across Sydney and Melbourne.
While the growth period in this seven year cycle is often referred to as a seller’s market, the alternate time during which prices correct, stabilise or fall, is considered a buyer’s market. This means buyers can look to bag a bargain in some areas and can expect realistic pricing in others.
Pick your season:
Spring has long been labelled the best time to buy as more properties come to market giving buyers a larger selection of homes to choose from. However with the influx of properties there is also an influx of buyers which can heighten competition and push up prices.
While winter has long been known as a down-time for property, savvy buyers know it’s an ideal time to get out there and start looking while other buyers hang back and wait for spring. While there may be less stock on the marker during autumn and winter, someone is always selling and it’s the best time to take advantage of the lull in competition.
The lead up to Christmas is also a good time to buy. With the end of the year on the horizon, many sellers may be looking to move into their new home in the New Year and so shorter settlements, price drops or other inclusions may be negotiated. If you are going for a Christmas buy, make sure your finances are in order as public holidays may risk delays.
The wider economy:
With banks now tightening lending, some buyers have become wary of starting or continuing on their property journey. In this case the best time to buy will be when you have a sense of financial security. A mortgage broker or financial adviser can help navigate you through what you can or can’t afford and will warn you against any purchases that you may struggle to pay off if there is a hike in interest rates. It’s also a great opportunity to get realistic about what you can afford and make an educated decision. If you’re looking to buy an investment, you may be hit with higher rates.