John McGrath - The Winter myth makes it a great time to sell

The theory that Winter is a bad time of year to sell is a myth that has persisted for as long as I’ve been around in real estate.

It simply isn’t true, but let’s put that aside for a moment and focus on the advantage it creates for vendors. If you’re thinking of selling soon, here’s why you should consider doing so in Winter.

The myth itself puts would-be sellers off. Many decide they’ll wait for the busy Spring season instead because they think there will be more buyers out in the marketplace.

Typically, this means fewer homes come onto the market in Winter, and this can create a tighter supply dynamic that greatly favours the vendors who do go to market in the colder months.

Here’s why the Winter myth isn’t true. Genuine buyers do not stop looking for their next home because it’s cold or raining. It’s the people who attend opens for fun, or for research purposes because they’re thinking of buying some time in the future, that stop showing up when it’s cold.

From a seller’s point of view, your only goal is to attract the maximum number of genuine buyers possible.

All you need to do is what you should do in any season. Pick a competent agent, invest in quality marketing, and you’ll attract those buyers no matter what the weather is like during your campaign.

Selling in Winter presents an opportunity to get ahead of the market in two ways.

Firstly, by listing in Winter, you can take advantage of lower supply and enjoy the benefits of more competition for your home.

Secondly, if you sell in Winter, by the time you have waited out your settlement period and received your funds, you’ll be ready to buy right when we start to see that first Spring rush of new listings.

So, instead of competing as a seller with all those new listings, you’ll be a buyer enjoying the benefits of having more properties to choose from.

This is the advantage that Winter provides to home sellers across Australia. And it’s relevant to vendors everywhere, even if you live in a market that isn’t doing as well as the others right now.

The median Australian home price rose by 8% in FY24 but those capital gains were not evenly spread.

The markets with the lowest supply of homes for sale experienced the most impressive price rises. Those markets were Queensland, Western Australia, South Australia, and to a lesser extent, NSW.

By historical standards, it’s very unusual to see property prices rising when interest rates are higher. The primary reason this occurred in FY24 was the low supply of homes for sale.

The latest CoreLogic data shows national listings are at about the same level they were this time last year. The volume of homes for sale remains about 17% lower than the five-year average.

Meantime, there is strong buyer demand, particularly from a rising number of investors coming back into the property market.

The latest lending data from the Australian Bureau of Statistics shows 37.1% of new loans in May went to investors. That’s the highest level in seven years.

I think investors see a window of opportunity to buy a high-quality investment property now before interest rates start to come down – whenever that may be.

So, if you’re thinking of selling, it’s time to talk to some agents. Ask them about market conditions in your area to see if this Winter season might be the best time to sell for you.