Why it pays to buy this side of Christmas

When the end of November hits, you can almost hear a collective sigh of relief as everyone begins switching into holiday mode! It’s an exhausting time of year in real estate, and if you’ve already been dealing with this tough market filled with uncertainty, nobody will blame you for wanting to wave goodbye to 2022 and start fresh in the New Year. 

However, everyone else winding down presents a golden opportunity to take advantage of the perks of the changing market. Instead of putting off your search for another month and focusing on the festivities, you can find yourself in a strong position to buy if you’re motivated to make your move before Christmas. Here’s why… 

There’s less competition.

Like you, most buyers are suffering real estate fatigue and are looking to wind down. Many also do the maths, calculating that if they were to buy now, they might have the hassle of moving during the holidays. 

Fewer people at open homes and less registered bidders means the determined buyers get first dibs. You also have a little more bargaining power. 

Agents and vendors are itching to get a deal done.

Unsurprisingly, agents also want to be able to wrap their year up in a nice bow before the Christmas break, which means selling as many of their listings as possible. With fewer buyers around, selling agents become more willing to work with buyers to get quick deals. 

Agents are also wary that if they don’t have a sale before Christmas, the property will likely sit unsold until momentum begins to pick up again post-Australia Day. This extra month on the market gets buyers asking questions, wondering what’s wrong with the property and likely putting in lowball offers. 

It’s a hot time for pre-market listings. 

A new year calls for a fresh start, so it’s the perfect time for many to make their next move. By the end of January, new listings are hitting the market in droves, and it’s not uncommon to see these properties begin circulating databases as off-market or pre-market listings in December. 

Being one of the first buyers to view one of these fresh listings again means less competition, and if there’s a deal to be done before Christmas, the majority of vendors and their agents will be more than willing to make that deal happen. 

The beginning of the new year is very competitive.

While December can be a great time to get a good deal, competition becomes very stiff by the end of January. Those buyers looking for a fresh start come out of hiding, and vendors take advantage of a hotter market. It’s very easy to get overwhelmed and lost in the action if you’re not prepared. 

If you’re not quite ready to buy, act like you are. 

With the end of January into February becoming such a competitive time to buy, getting your affairs in order in December (as if you’re ready to go) can make a huge difference when it comes to beating the competition. 

The application and approval process of a pre-approval loan is lengthy and can be tiresome. With banks operating on skeleton staff over the break, the pile of paperwork moves even slower. By January there’s already a backlog, so if you wait until the New Year, you’ll likely wait longer than necessary for approval. 

It’s always smart to go into your property search with eyes wide open and getting pre-approval serves the purpose of helping you understand exactly what your budget is. With your budget in mind, you’re able to focus your search, avoid time wasting, and you’ll be ready to make an offer with short notice. 

If you need a little extra support, please don’t hesitate to reach out to our team. In the meantime, stick with it and you may just find yourself enjoying a relaxing break with contracts exchanged and a new home ready to go in 2023.