Spring is a popular month for its warm weather and greenery — but these aren’t the only factors that make the season such a hit with Australians. Those with home loans may be thinking about selling up in order to upgrade or downsize, and it appears there’s no better time to do so than in spring.
In years gone by, spring has been the busiest time for home sales than any other during the year. In the first week alone of spring 2014, more than 2000 auctions were sheduled according to RP Data’s National Auction Preview.
At the time, Robert Larocca, RP Data Auction Market Specialist, noted that the spring season is a popular time to sell, “From a vendor’s perspective the spring auction market is gaining strength at just the right time with buyers driving the clearance rate higher as stock levels rise.”
Just what is it about spring that sees buyers attending auctions and open inspections in droves?
For one thing, the weather is more pleasant, making getting out of the house more appealing. Last spring was the warmest one ever recorded, with regards to both maximum temperatures and mean temperatures, according to the Bureau of Meteorology.
In New South Wales, most of South Australia and in parts of Northern Territory, Queensland and Victoria, rainfall levels were below the national average.
Time to settle
Purchasing a property involves many steps. From establishing borrowing capacity with a home loan calculator to signing a contract for sale, there are plenty of hoops to jump through so home buyers are keen to buy in spring in order to settle before the Christmas holidays.
When a purchaser signs a contract of sale, there’s a period of time in which they can complete necessary checks (such as building inspections), arrange their finances and get their legal representative to run a title search of the property. Settlement day occurs at a later date — this is when the balance of the purchase price must be paid.
Sixty-day settlement periods are common across Australia, though the figure can change. In order to find out what’s on the market, make an offer, purchase a house and complete settlement before the relaxing festive holiday season, buyers are keen to start the home-buying hunt in spring.
There’s another reason why families and couples snap up properties in spring — there’s more light!
Daylight savings commences on the first Sunday in October, meaning there’s an extra hour of light in the evenings, which is perfect for sellers hosting open inspections.
This gives sellers more opportunities to fling open their doors at times that are convenient to busy individuals looking to buy, such as after work on a weekday evening.
And it’s amazing what a value a little sunlight and warmth can add to a home when it comes to sale time.