A Special Occasion

By July 7, 2014 August 6th, 2014 No Comments

o-OLD-COUPLE-HOLDING-HANDS-facebookGeorge always wanted to take a trip to the old country. All his life he’d talked about when he’d retire, and he and Marge would revisit all of the old places they’d not seen for years. They’d been saving carefully along the way to do it in style – it would be the holiday of a lifetime.

Unfortunately, just before he was due to retire, George fell ill. His doctor said it would be too risky for him to take the trip, now or ever.

We all do it in some way – postpone important events or fail to use beautiful gifts, all because we’re waiting for the “perfect” time. Which sometimes never comes.

In the property world, the trap is in an old adage – that one that says that spring is the perfect time to sell. The theory goes that with the garden in full bloom, the property will look at its best, which naturally means the buyers will pay more. Or does it?

The reality is that property is just like any other commodity. The sales outcome is largely based on demand and supply. When there is less demand to meet the supply, the buyer has the upper hand. And when there is more demand and not enough supply, the seller is on top.

This winter, demand is strong. Today’s news that a major lender has dropped their variable home loan rate to just 4.65% will only add to the already-strong stimulus of a low interest rate environment. At Ray White, we sold 58% more properties in June than the long term monthly average.

Supply is in good balance currently, but there’s no doubt that spring will bring a rush of new listings, for the reasons we’ve already detailed. For those considering an imminent sale, going to market prior to any increase in competition for buyers would be the most logical course of action.

Unless of course you’re waiting for a special occasion.

All the best

Michael Kirwan