Strong auction results show why listing your home in winter could pay off
The Sydney auction market has certainly seen a nice boost in the first auction results of winter as bidder numbers have risen along with a strengthening auction success rate.
It raises the perennial question of whether winter should be seen as a marketing opportunity for vendors, perhaps this year more so than ever.
The 2019 market has been severely disrupted with Easter, the Anzac Day long weekend and then the federal election all in quick succession.
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We now hit the traditional seasonal slowdown when many vendors across some suburbs simply think it is better to wait until spring.
As Realestate.com.au chief economist Nerida Conisbee has previously noted, people’s homes and gardens do tend to look better in spring and autumn.
“In winter they tend to look drab,” she suggested.
Estate agents hoping for their traditional overseas holiday break will be happy to sign-up listings, but then likely delay their marketing until their return.
But many other agents will be encouraging potential sellers to get into the market over winter while there was less competition, and to enjoy the recent fillip seen since the federal election weekend.
The total number of Sydney properties on the market last winter was down around 8 per cent on the 2018 autumn volumes.
Given the arrival of the downturn in winter last year, the winter sales tally was down 17 per cent on autumn 2018 and the auction clearance rate down seven percentage points.
However last winter’s near 50 per cent clearance rate was actually higher than what emerged in spring when there was an even weaker 45 per cent.
CoreLogic auction analyst Kevin Brogan noted this week that any properties listed after the surprise election result were only just coming to market. The properties auctioned over the few weeks were listed prior to the federal election, so although we are seeing a post-election influence on clearance rates, we haven’t seen the same influence on auction numbers, Brogan noted.
“The recent clearance rates support the view that confidence is returning to the market after the federal election result,” he said.
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The stimulatory factors include the continuity in negative gearing and capital gains tax concessions for investors, the potential changes to the APRA home loan serviceability buffer from July and the prospect of two or possibly three reductions in interest rates.
CoreLogic calculated nine out of 15 Sydney subregions returned preliminary clearance rates over 60 per cent last weekend.
The highest preliminary clearance rate was in the city and inner south at 75 per cent from 45 results.
Ray White NSW chief executive Jason Andrew says his agents have been lining up more properties for winter than in previous years.
If you are keen to list there are some smart measures to make viewing that little bit more pleasant for prospective purchasers.
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You know that great feeling you have when you walk into a warm home, or a shop, from outside in the wind and the cold? Take advantage of it.
And never is it more important than at a winter open home to light up your property with soft, warm lighting.