The days are getting longer, the mornings warmer and spring is just a couple of weeks away – and so too the traditional property buying season.
History shows property market activity usually heats up in line with the weather and for budding home buyers this means it’s time for business.
According to industry experts home buyers can expect a bigger range of properties to come onto the market in the months ahead.
The Real Estate Buyers Agent Association of Australia’s (REBAA) president Byron Rose this week said that while the hung parliament will no doubt postpone the start of the season, the association was predicting good stock levels throughout the coming months after a delay by vendors to list due to the election.
Mortgage Choice spokesperson Kristy Sheppard believes that there actually already more properties on the market than usual for the time of year.
Despite the optimism expressed by some industry pundits, first home buyers need to remember that each and every market is different.
In some markets availability is tight, with listed properties scarce, or snapped up by buyers very quickly. Some real estate agents are actually desperate to attract listings in a number of markets Australia wide.
The result of fewer properties on the market is greater competition for property – which puts upward pressure on prices. With more buyers interested, there’s less opportunity to negotiate on price.
While the market does typically heat up in spring, first home buyers seeking entry onto the property ladder need to be ready to do the hard yards in terms of their property search.
Only through inspecting a range of properties will you get a feel for the market, understand what’s available in your price range and what actually constitutes a good or bad deal.
In his column in the September issue of Smart Property Investment, editor Phillip Tarrant says first home buyers need to immerse themselves in the property market to truly understand it.
“It is tedious and it is also hard work – and it can become at times frustrating,” he says. “But the pay-off for buyers that do the hard yards will be significant.”
You can read Phillip’s column plus a host of other buying strategies in the September issue of Smart Property Investment, on newsstands this week.