Should You Buy Investment Property in Sydney in Spring?
There are certain questions for which the answers are never too direct or conclusive. I have often been asked whether spring is the best time to buy investment property in Sydney. You tell me! I can give you a good reason why it is and why it is not. Anyhow, let me discuss a few statistics with you before sharing what I feel about the question.
Highest number of sales are recorded during spring
What is conclusively proved is that the market dips and buyer sentiment fizzles out during summer and winter months. If I take the figures, courtesy of PRD Nationwide, into account you will see that for the Greater Sydney region, there have been altogether 12,000 sales during spring over the last 5 years. That’s some figure!
A few statistics worth going through
From spring to summer, the average dip has been a touch above 20%. The market on an average has risen by 13% between summer and autumn and 4% between autumn and winter before dipping once again during the winter months.
If you look at the median prices, they have also shown an urge to grow robustly during spring- what with a hike of 6.3% on an average over the timeframe discussed. So, when you see this data, what’s the first thought your mind goes through?
It is perhaps that there is a lot more fierce competition in the market during spring and the prices might be a little beyond the exercisable budget. After all, did we just not discuss a median growth of 6.3% during spring season? However, in my opinion, this data is not discouraging at all.
Don’t be prejudiced against spring
Because if there are a higher number of competitors there are a higher number of properties to be lapped up, too. At no time during spring will you feel the supply side badly assaulted by demand. So, here is a beautiful situation where the prices are not disproportionately high so you feel far from discouraged and listings are so varied and large that you feel there is something definitely up your alley (I mean chances of finding your dream home is higher).
Now, it is for you to think!
Don’t be timed out in a bid to time the market
I have known people who have spent a better part of their lives timing the market and just when they think they should wait a day more for the best bargain, prices move up, forcing them to wait for the next cycle. This is not a strategy which will ever work for me.
The second best time to buy properties is today, does not matter whether it is spring, summer, winter or autumn. And if you are wondering when the best time is, you missed it by a 100 years. Don’t give spring a miss out of prejudice or a preconceived notion. Test for yourself!
Have you found the listings appealing during spring or the price a deterrent?