Housing market: Agents say Christmas period could be the best time to buy as attention turns to festive season
With property listings continuing to rise weeks out from the festive season – buyers’ agents say there may be a “window of opportunity” to snag a bargain over the coming two months.
Pete Wargent, the co-founder of BuyersBuyers, a marketplace for buyer’s agent services, says it’s common to see clients “losing a bit of interest at this time of year” as attention turns to the holiday period.
“But with new listings rising, some buyers are sensing a window of opportunity to buy ahead of the international borders reopening in full in 2022, especially in Sydney and Melbourne,” he said.
Mr Wargent said December and January could be an “exciting time to buy property, with less competition” and the pandemic had brought about other unusual circumstances.
“Immigration has been high in Australia for the past 15 years, and it will be again relatively soon. But for a brief time, there may be an opportunity to snare a bargain purchase,” he added.
BuyersBuyers CEO Doron Peleg agreed there was a matter of weeks before “record low overseas arrivals numbers are replaced by a new wave of arrivals”.
“The permanent immigration cap may even be lifted to above 200,000 in due course alleviate Australia’s skills shortage,” he said.
“Logically buyers should have less competition and potentially more choice before international travel picks up again in earnest.”
He added that while stock levels had been exceptionally low this year, the market has also been changing in most capital cities.
Buyers should have less competition and potentially more choice
Mr Wargent recommended property buyers take a medium or longer-term focus with regard to prices.
“As we have seen over the past 18 months, even the experts have been unable to predict market movements with any meaningful level of accuracy,” he said.
“Buyers ideally shouldn’t become too focussed on small price movements since they tend to be relatively immaterial over a decade. Try instead to think about where prices will be 10 years from now.”
‘Lost some potency’
It comes a day after CoreLogic revealed house prices had continued to climb in November – a 14th consecutive monthly increase – but at a much slower pace than earlier in the year.
The monthly pace of house price growth is less than half that seen at the peak in March when prices rose by 2.8 per cent.
However, overall, house prices are now 22.2 per cent higher than 12 months earlier, adding around $126,700 to the median value of an Australian home.
“Virtually every factor that has driven housing values higher has lost some potency over recent months,” CoreLogic research director Tim Lawless said.
“Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.”
CoreLogic National Home Value Index (November)
- National – up 1.3 per cent (this month), up 22.2 per cent (annually)
- Sydney – up 0.9 per cent, up 25.8 per cent
- Melbourne – up 0.6 per cent, up 16.3 per cent
- Brisbane – up 2.9 per cent, up 25.1 per cent
- Adelaide – up 2.5 per cent, up 21.4 per cent
- Perth – up 0.2 per cent, up 14.5 per cent
- Hobart – up 1.1 per cent, up 27.7 per cent
- Darwin – down 0.4 per cent, up 16.7 per cent
- Canberra – up 1.1 per cent, up 24.5 per cent
- Combined capitals – up 1.1 per cent, up 21.3 per cent
- Combined regional – up 2.2 per cent, up 25.2 per cent
– with AAP
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