The strong weekend auction clearance rate in Sydney of 61.7 per cent recorded by Australian Property Monitors on Saturday – the biggest auction day since March – took many by surprise reports Stephen Nicholls, Property Editor from Domain.com.au. He states the prospect of having more money to spend with last Tuesday’s interest rate cut may have been one factor in the improvement and he said “It’s interesting that 28.8 per cent of the auction sales reported to APM happened before the big day.”
Agent Teresa Natoli, of Ray White Surry Hills may be onto the main reason:”I think people want to get their stuff sorted before the end of the year” and Matt Lahood, the director of sales for McGrath Estate Agents, said the big jump in sold prior to auction transactions was reflective of the time of the year. “From a buyer perspective, it allows a purchaser to get set before Christmas and in some cases even move in,” Mr Lahood said.
Some believe that pre-christmas is a quiet time for real estate, but as the auctions and sold prior transactions in Sydney show it can be a good time for real estate sales. Properties purchased in tourist areas like Merimbula, Tathra Beach, Tura Beach, Pambula Beach or Eden can be immediately let for holiday rental over the peak season of January bringing in an income, which can help cover purchase costs and rates.
Vendors can be more open to offers at this time but purchasers should always make their first offer their best offer and it is advisable to seek finance prior to making an offer. Of course banks are busy at this time of year too, so time is of the essence.
A sale pre-christmas can benefit both the vendor and purchaser. A settlement for the vendor means less inspections and enquiry by tyre kickers during the busy holiday season and the chance for the vendor to relax and enjoy their own holiday knowing they have their property sold. The purchaser benefits by having the sale settled before Christmas activities take over and they can either let the property or enjoy a holiday in it themselves, or if they have purchased their family home, move in over the holidays when they have plenty of time to get settled in.