Investors who aim to purchase a property under list price should consider buying in December when demand is low, according to industry stakeholders.
The Christmas season has historically been slow compared to other months, with December recording the lowest sales volume of any month.
According to RP Data, the total number of dwellings sold in Melbourne last year was 5,140, the year’s lowest, and 43 per cent lower than March, the busiest month for the city.
“Over the past five years, the sales volumes that we’ve recorded and made between 15 December and 5 January have been at a very low level, and have been for some time,” Sissons Estate Agents’ principal Peter Sissons said.
Speaking to Smart Property Investment, Property Buyer managing director Rich Harvey said the primary reason for the slowdown was that buyers and vendors were looking for “a resolution” before the holidays.
“Demand tends to drop off about mid-December,” Mr Harvey said. “People have different priorities at this time of year.
“They are gearing up for annual holidays, attending Christmas parties and finishing work projects. Because property searching is so time intensive, it can get put on the back-burner.”
As a result, Mr Harvey said, Christmas is the perfect time for investors to negotiate a good deal and take advantage of motivated vendors.
“It just gives you great bargaining power,” adds Where Group director, Todd Hunter. “Investors can test the flexibility of vendors by making a low offer.”
Investors should start looking around from October to be in a good position to buy before Christmas, he added.