For at least 8 of the last 11 years that I have been in Real Estate sales, I have been advising clients that beating the spring rush can give you an advantage when selling your home. The knowledge behind this advice has come largely from anecdotal experience, rather than hard data. However, as very active market participants, over time we get a very good feel for how seasonal aspects of the business affect supply and demand. Traditional wisdom (long on tradition and short on wisdom in my opinion) has it that the spring months of October/November are the best time to sell. The idea being that your house looks better in sunny weather, flowers are out in the garden, and more people are out looking to buy. The problem is: This is simply wrong. For instance we have just sold thirteen properties in the last six weeks, at the absolute peak of winter, and nearly every one of them was completely flooded with buyers who had nothing else to choose from. Look at the listings in the Property Press right now and you will see what I mean: It’s paper thin. The always enterprising CEO of Realestate.co.nz, Alistair Helm, has provided the statistical evidence that we are correct. Alistair’s conclusions are best left in his own words:
"It may come as some surprise to learn that there are some hidden “windows” of opportunity during the year to list a home for sale! In fact when selling a property, the best time could be in the middle of winter, a time traditionally thought of as the worst time of the year for the property market! The chart below tracks the seasonality of listing volumes (new property coming onto the market) and also number of people viewing property online. These important new sets of data have only recently been available as a function of the dominance of the web in real estate researching."
The activity of researching and viewing property online hardly varies by much through out the year (with the single exceptions of the ever-present distractions of Christmas and the fast approaching summer holidays). The one surprising fact though highlighted from the analysis is the seasonality of new listings coming onto the market. In this regard the behaviour of sellers is completely out of line with buyer activity. The majority of new property listings tend to flood onto the market in October & November. Such is the surge that close to 40% of all new listings in a year, pour onto the market in just these 4 months in the expectation that this is when buyers are most active. Equally in contrast, those winter months of June, July and August show the lowest level of new listings coming onto the market falling to barely 20% of the annual total of all new listings hitting the market during the 3 months of winter. So what does this analysis tell us as property owners and buyers, and what should you do to take advantage of this analysis? Well thinking about it, there is an opportunity here for astute property sellers. For whilst the temptation is to list either in the spring or summer, grabbing the winter season could give your property greater exposure at a time when fewer listings are out in the market to compete with, and yet at the same time buyer interest does not decline to the same extent. It also puts you in a cash position to buy when there is an oversupply during spring/summer
We agree wholeheartedly with Alistair’s findings. There is still plenty of time to sell before the spring rush. The stats show that late August/early September is actually the best time of all, which could potentially add tens of thousands of dollars to your sale price through increased competition, provided you start the ball rolling now
Pick up the phone now and call me on 021-764-647 and I can give you an assessment of your homes value and tell you exactly the right strategy to extract a premium from the marketplace. There is absolutely no cost or obligation – it’s free.