How to find a gift in the Christmas property market
The Christmas property market:
As buyers and aspiring vendors begin to put their property plans on hold and start focusing on their holidays, the more astute start sifting through the realestate.com.au listings in search of some potential bargains. Coming into the first week of December, the majority of sales agents will suggest to upcoming vendors to hold off on marketing their properties until the second week of January. They predicate this advice upon buyer interest diminishing as the public shift their focus to the Festive season rather than bolstering their property portfolios.
Other common Christmas property market sale trends see a small decline in auction clearance rates. As a result of this decline, you will notice that there will be an influx of properties that had passed in at auction, now being offered for private sale. This puts the savvy buyer in an advantageous position to source potentially lucrative bargains during the Christmas property market period. I’ve gone on the record to state the auction market tends to push property prices up as emotionally invested buyers get a little bit too trigger happy during the bidding process. As more private sales start to enter the market, results tend to skew more towards true market value.
Vendors that had advertised their properties at a price that was above the market are now adjusting their expectations. The fear for a lot of these sellers is that they will have to wait a few weeks into the new year to find a new pool of buyers. The other unfortunate thing for these sellers is that their home starts to fall further and further down the pecking order on the online real estate portals. It has been well documented that 75% of buyers do not look past page 2 on realestate.com.au when searching for a property, therefor 3 quarters of the market are not engaging in physical visits of the subject sale property.
If you’ve been on a hunt for properties and are looking to wind back over Christmas, right now may actually be the perfect time to shop. Instead of waiting for new properties to pop up in your notifications and dealing with the competition that comes along with it, try flipping your search criteria from oldest to newest. This will display all of the extended listings in the market first. A vast array of untapped properties will appear, with vendors who’ve most likely not had not had a single potential purchaser walk through their door in weeks. This is precisely where the bargains can be found.
If you see a property that doesn’t seem appealing in its photography, take the time to organise an inspection with the listing agent. Sometimes these properties can actually surprise you as not all property photographers are made equal. The other misconception that arises is the idea that there must be something wrong with the property. This is commonly not the case, as most of the homes in this list were originally priced above market value, and as a result have lost buyer interest.
If you do find a diamond amongst the rough, speak to the listing agent about documenting an offer for the property, even if it’s below the vendors expectations. The worst thing that can happen, is your offer will be rejected, but more often than not, the vendor will be willing to start negotiations with you. If you do not feel comfortable with this process, you can employ an experienced buyer’s agent to develop a plan for securing the property.
Well, that’s it from us for this year. We will be returning early in January with a new series of blogs about all things property. Alternatively, if you would like to chat to us about how we might be able to help you during the Christmas property market period or you would like to get a head start on your 2020 property search, please feel free to get in contact with us.
We hope everyone has a safe and fruitful Christmas and new year.
Till next year,