Supply and Demand Heading Into Winter
Winter is generally considered a quiet time for selling property in Melbourne. It isn’t due to a lack of demand by any means – people want houses during the winter just as much as they do during the summer. No, it isn’t demand-side issues that result in a slowing of activity during the colder months of the year. It is a lack of supply.
Winter is coming, but it’s still a hot time to sell.
Disappearing supply
The colder months here in Australia cause plenty of people to decide to head off somewhere with a little more sun and a little extra warmth. Europe, particularly England, remains one of the most popular destinations for older Australian homesellers according to Roy Morgan, and the Australian Bureau of Statistics confirms that June is when they tend to leave the country. This data and the drop in new listings is hardly a coincidence: people heading off to sunnier climes aren’t going to try and sell their house at the same time.
This results in a drop in established homes, but new supply hitting the market can also be impacted by the winter months. The extreme weather such as storms can put a literal dampener on construction projects, causing them to be delayed or paused, while many sellers choose to wait until the spring when their home will be arguably better presented for sale.
Heating the market
Your home has the chance to stand out among the smaller pool of houses going to auction.
However, a savvy Melbourne vendor looking to sell their home will be taking this as an opportunity more than anything else. The fact that CoreLogic RP Data records strong auction clearance rates in winter every year demonstrates that people still want the homes. The first week of June 2016, for example, saw a 71.4 per cent clearance rate in Melbourne: a strong result by any metric.
The winter season might be colder and quieter, but that doesn’t mean it’s a bad time to sell – in fact, quite the opposite. In an under-saturated market, your home has the chance to stand out among the smaller pool of houses going to auction. If you’ve had trouble selling in the past, this is your opportunity to shine. Meanwhile, if you have been putting off your auction due to the pressure of the silly selling season, this is your chance to have a more relaxed auction.
Melbourne is rapidly growing, with pending oversupply. But during winter, that supply drops down, and demand stays exactly where it was. Listing your property with one of the auction experts at Nelson Alexander during the winter means your home will get the attention it deserves.
The winter months might be colder, but it could be the key to heating up your chances for a good sale.
