Insight

12.10.16  Property Trends

 

Real Estate In October: The most important month for sellers and buyers

Now we’re well into October, it’s even more crucial for buyers and sellers to make strategic decisions about their next home.

This is unquestionably the most important month of the year for real estate, but this is even more so the case in 2016, with more people than ever wanting to buy before they sell due to the shortage of homes available.

But here is the dilemma – if a homebuyer doesn’t purchase within the next month, they won’t be able to sell before the end of the year. And if you can’t sell by the end of the year, but you have bought, you’ll either need to ask the vendor to take a long settlement and hope they accept or you’ll need to organise bridging finance to cover you until the property market opens up for business again in the New Year.

Not every homebuyer is going to be in the financial situation to organise this sort of bridging finance, and sellers aren’t always happy with the prospect of a long settlement that could delay their own moving plans. You could always choose to sell and make alternative accommodation arrangements for the Christmas break, but home values do still seem to be climbing, albeit at a slower pace than seen 18 months ago.

What this means is that you need to head into the market with a game plan, having thought about these concerns in the past. Have a trusted mortgage broker or lender who can answer these questions prior to bidding at auction and speak to any family members involved in the purchase.

As a result of this particular market dynamic, it’s likely that from the middle of October onwards we will see an increase in sales campaigns as many look to sell and buy in the lead up to Christmas. And because the market clocks off around the second Saturday in December, with few listings and sales from the last auction Saturdays on the 10th and 17th, it's important to have your buying and selling conversations now.

As October marks the beginning of the last quarter of the year, you should be asking yourself: Are you going to be able to buy something this side of Christmas? And what is your plan to make the most of the hottest auction market we’ve seen in months?If you’re interested in selling your home, you need to be speaking with your real estate agent as soon as possible. With most auction campaigns running for at least four weeks, and pre-listing conversations needing to take place, it’s critical that you take the plunge and put your home on the market as soon as possible if you want to sell before 2017.

Homes are selling quickly at the moment, pre-auction offers are increasingly common and it’s not certain we’ll see this same strength next year. Now the Grand Final weekend break has passed, we’re back in full swing for auctions and the big opportunities to get your new home and to sell for a profit are on the cards.

In September, Australian Property Monitors figures found the city and east had a 78.1 per cent clearance rate – compared to 75 per cent in September 2015. And there were about 20 per cent fewer auctions across the area this year compared to last.

This means the auction market is likely to stay powering into December and sellers should make the most of it.

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