Forgetting about the current economic climate and real estate market conditions for a moment, and focusing purely on sales data for January over a number of years, it can be said that this month is typically when home buyer’s who’ve been searching for a number of months deliberate over the possible purchase of a property. So for those looking to buy in January, this can mean less competition and a greater range for negotiation. Therefore, enabling you to save on the purchase price. In fact, according to real estate data collected over 9-years from RPData, the most popular purchase times during the year is in March and May.
Why is this so?
Market professionals feel that these are the peak buying months because the majority of people have less family, social and financial commitments. This, in turn, creates a more relaxed and easy-going atmosphere where individuals and couples are willing to commit long-term.
Why Can Buying in January be Favourable?
Over the Christmas and New Year period, real estate sales slow-down and many buyers tend to leave the market. The homes on the market, however, remain the same and this then represents a buyer’s market, where supply exceeds demand. Therefore, for anyone seeking to buy, January represents one of the best times as you are spoilt for choice and can often save yourself money.
January, therefore, is a time when buyers should make lower offers. As this is a time when the majority of ‘would-be’ buyers are on holidays or are recovering from festive season headaches, credit card splurges and typically tightening their belts. Whereas, if you’re ready to make an offer, then the seller of a property may be more willing to listen, and possibly negotiate.
What About Current Market Conditions?
Now looking at the broader market, property prices are still low after reaching their lowest mid-last year. Economically, Australia is beginning to come out of a slump. Interest rates are at an all time low. In fact, they are the lowest they’ve been in more than 50-years. With the official cash rate sitting at 2.5 percent and economists predicting that rates may possibly drop once more before going back up. In fact, many economists are predicting that the turning economy and other factors will start to drive property prices and interest rates up. So for those looking to buy, consider your options sooner rather than later. Otherwise you may find that home loan interest rates and home prices have risen.
Looking to buy a home and need finance? If you said yes, then contact eChoice and find the right home loan for YOU today
Written by eChoice