I always find interesting the perceptions that people often hold about the timing of buying and selling real estate. I know of many people who equate cold winter months to a cooler property market and are thus afraid to put their home up for sale, or those buyers who don't even bother looking. And then there's the hype that usually surrounds the Spring Selling Season, where both buyers and sellers gear up for action.
It's true that in spring there is a certain buzz in the residential property market air. For those Australians in the colder states, September brings relief in the form of sunshine and warmer weather. It is somewhat easier to drag yourself out of bed on a Saturday morning to attend open houses, and the houses themselves, with their gardens in full bloom, often look more attractive.
Having said this, when considering the entire year, you may find it surprising that spring doesn't actually see the most sales activity. While spring does generate the greatest number of property listings, sales volumes are actually fairly evenly distributed across all months of the year.
A study conducted by RPData looked at sales volumes between January 2000 and December 2009 and found that on a national basis, the busiest month for house and unit sales is actually March which, on average, accounts for approximately 9.3 per cent of all residential property transactions.
And despite March being the busiest month for property, there is actually very little variation in sales volumes across the year, with May being the second busiest month (9.2 per cent) followed by July, October and November. December and January are exceptions to this pattern, with sales declining substantially over the Christmas and New Year period.
Spring turns out to be the second busiest month for sales activity, however again, the distribution is fairly even. Autumn attracts the most buyers (26.6 per cent of sales), followed by spring (25.4 per cent), winter (25.3 per cent) and summer (22.7 per cent).
So what does all of this mean for those Australians who are currently looking to buy and sell residential property? I think these results definitely help to relieve the pressure felt by many to act in September.
I often hear stories about people who are ready to put their homes on the market, but are reluctant to do so before September because they feel that spring is a more successful period to sell in. You also see people rushing to get their home ready for a September sale, when a little bit more time spent preparing would put the home in a much better position. The results of the study show that such beliefs are unnecessary, and that the time of year a property is placed on the market doesn't necessarily matter as much as many people think it does.
For those people looking to buy, you don't have to wait around for spring if you are ready to purchase a property now. And when spring does arrive, don't be disheartened if you are unsuccessful in buying. Summer may actually prove to be a time when you could get the best price, given the lower levels of competition.