The benefits of buying during the festive season
With the silly season just around the corner, many of us are taking time out to celebrate the year’s festivities or plan a Christmas getaway with family and friends. In real estate terms, this period is often considered a downtime, with the majority of investors putting their investment decisions on hold until market activity returns to normal in the new year. However, whilst the majority of us shy away from entering the market during the Christmas holidays, some property experts believe there can be significant advantages to acting during the festive period, with the property market presenting unique investment opportunities for astute buyers. So, what potential benefits can this strategy hold for savvy investors seeking good real estate deals?
Traditionally, sales activity in the property market will decline during the Christmas period, with a noticeable drop in the amount of stock on market as sellers delay listing their property or even take their property off the market altogether until the new year. Whilst this may mean less stock to choose from, this activity will also be mirrored by buyers, with fewer investors coming to market as more people take time off during the Christmas break. However, for those willing to enter the market, this drop in activity means less competition from other buyers for remaining stock, which can in turn present a key opportunity for investors to pick up a good deal on high-quality stock whilst competition is low.
Whilst many sellers will hold off on listing their property until the new year, those who do decide to advertise their property over the Christmas period may have a stronger motivation to sell. For example, an investor may have bought another property and need to sell their existing property within a shorter time-frame, or they might want to finalise a deal before the end of the year to avoid the influx of property listings in January. As a buyer, knowing and understanding the motivations behind the sale can present a unique opportunity to negotiate a great price on a property purchase, allowing you to make an offer that meets the seller’s needs whilst securing a favourable property deal in turn.
Avoiding the New Year rush
With property listings typically decreasing over the Christmas period, much of the stock that was previously ‘on hold’ will generally come back to market in January, resulting in a surge in transactions as aspiring sellers fulfill their New Year’s resolution and put their property up for sale. Acting before the New Year’s rush can present buyers with a prime opportunity to get in before the crowd, or alternatively benefit sellers looking to avoid the oncoming influx in competing stock. Even if you don’t manage to snap up that bargain deal before the start of the new Year, keeping a close eye on the market could put you in a better position to get ahead of the competition when new properties come onto the market in January.
If you are looking for your next investment property and would like to speak to our Perth’s buyer’s agents for professional advice on your next purchase, contact us today to organise an obligation-free consultation with our property experts.