The coldest months of the year are finally on their way out. As we reach the end of August, and the traditional end of the winter season, now is better than ever to look back at the last few months to see what the weather has meant for the property market. Of course, it's worth remembering that we're not quite out of it yet, and won't be until the spring silly season kicks off toward the end of September. So, what has winter meant for Gold Coast real estate?
Well, first and foremost, we all know that the Gold Coast doesn't experience winter in the same way as the rest of the country. In fact, even in the depths of the season, residents of the Gold Coast can expect temperatures to hover between 12.5 and 21.5 degrees Celsius. Even so, the greater effects of winter on the Queensland and Australian property markets can still be applied to the region, and can also provide valuable insight for buyers and sellers as to when the right time to take the plunge might be.
In a nutshell, the broad effect of winter on the property market is that less homes are listed. There are a wide range of reasons for this, but chief among them is the opinion that winter simply isn't an attractive time to sell. While this isn't strictly true, the poor weather certainly does contribute to more homeowners feeling that moving and selling is better suited to the warmer September-January period.
This trend can be seen across the nation (with new winter listings down by 13.9 per cent), but in 2016, Queensland has fared far better than most other states, according to CoreLogic RP Data. For example, the Northern Territory has experienced a drop of 36.4 per cent, compared to Queensland's 3.1. This can perhaps be put down to the state's famously good weather, but also to the huge growth being experienced in certain key areas. Chief among these is the Gold Coast, recently listed by the Price Predictor Index: Winter 2016 as the nation's top performing city in terms of growth – making it a very attractive region for real estate investors. The question remains then, is winter a better time for buyers or sellers?
With less properties on the market, even in the booming Gold Coast, winter presents an interesting conundrum for buyers. On the one hand, the season provides a unique opportunity to view homes at their least flattering – crucial when it comes to identifying any potential issues such as leaks of draughts. On the other hand though, a limited number of homes on the market means that prices are likely to be higher, especially in areas of high demand like Surfers Paradise.
With this in mind, winter is commonly regarded as something of a sellers market. Even so, the Gold Coast is a region where prices are increasing anyway, so delaying in hopes of getting better prices may actually result in having to pay more as the demand continues to go up and up.
Selling is where the real property gains can be made during the colder months, thanks to less listings and less competition. Speaking to the Gold Coast Bulletin on August 24, real estate maven Andrew Winter concluded that arguably this could be described as the optimum time to go to the market", although he did reiterate the importance of timing. If you wait too long to sell your Gold Coast property, you may just find that you get caught up in the wave of new listings that will surely arrive in spring.
For more information on all things Gold Coast property, get in touch with Ray White Surfers Paradise.