Article By Christopher Melotti
Thursday, November 14, 2019

Is spring really the best time to buy and sell property?

Spring is in the air

It’s spring!

The sun is shining and everything is in full bloom. It’s the perfect season for real estate – or is it?

Most Australians assume that buying and selling property is at its peak in spring. The busy real estate market is usually due to this closely held belief that spring is naturally the best time to buy and sell.

Why, though? Does data actually support this idea?

When you invest in property, it’s important to make the right decisions. So, let’s delve into spring and see if the belief holds up to reality.

 Spring real estate press always creates a frenzy

Many real estate agents and sellers anticipate an influx of buyers during spring. 

As a result of warm and comfortable weather, it’s assumed that buyers have no reason to delay their search for their ideal property. This increase in home buyers should result, then, in more competition that will drive up sale prices. Aside from that, properties also generally look more picturesque during spring due to the flourishing gardens and bright natural light.

Buyers equally tend to consider spring as an optimal time to purchase because there are abundant options from the large supply of properties on the market during this season. Furthermore, the good weather will allow them to easily move in and get settled, all before Christmas.

All these reasons seem to make logical sense – but are they enough to prove that spring really is the best time to buy and sell, especially if you’re trying to maximise your portfolio value and return on investment?

Real estate data indicates that it’s not applicable to all cases

First off, it’s important to understand that the geographical characteristics of a home or apartment can affect the ideal time of when to buy and sell. For example, in humid locations, a property is more appealing in winter, while a home near the beach is great to showcase during summer.

It is also necessary to consider that each state and suburb can be vastly different from one another. Each individual property market is unique – the conditions in Sydney may not necessarily be applicable to that in South Australia, for example.

In fact, recent statistics show that even suburbs within the same city, such as Sydney, can be significantly different when it comes to property value too.

For more, read our blog: It’s time to stop thinking of Sydney as one property market

Even though it’s spring across the entirety of Australia, the property markets within it are all different.

Let’s look at some evidence gathered from the TUDI platform to test how relevant the seasons are to successfully buying growth properties.

In September, the first month of sunny spring, Willow Vale in Queensland had 1 year price growth of -52.5%… St Kilda in Victoria had a 3yr Median Price Growth of -28.2%. They are both pretty drastic declines and no amount of sun would have you buying while they continue to fall.

And if we look to the other end of the seasons, when the leaves are falling and winter is setting up to come; in March 2019, Sunshine Beach in Queensland was enjoying a warming 1 yr Median Growth of 40.5%.

Or even the dead cold of winter can deliver winners, with Canowindra in NSW enjoying red hot 3 yr Median Price Growth of 54.4%

So forget the seasons. A thermometer does not provide an indicator for buying and selling property. Instead, look to the data!

What does this property data show?

This is just a tiny snapshot into real estate data, but it clearly indicates that the best season to buy and sell properties shouldn’t depend on the weather or hearsay alone. 

So, bfore you join the spring rush of buying and selling properties, it’s vital to look at the bigger picture and do your research on up-to-date and accurate data to help you make more informed and savvy investment choices.

How does data help people make better investment decisions?

It comes down to having the right information! Data is the single determining factor between myth and reality.

While hunches, hearsay and widely held beliefs about the property market can be helpful sometimes, real statistics and indicators based on recent data are far superior if you truly want to grow a profitable property investment portfolio.

So, instead of just easily joining the bandwagon, you need to focus on making clever decisions about selecting the right property in the ideal hotspot suburb.

If you’re looking to make more informed decisions about property investing, consider TUDI.

TUDI’s investment technology does the hard work for you. The accessible and user-friendly platform empowers you to invest with confidence by giving you the insights you need to be successful in the property market