Spring is certainly in the air. You need only walk outside to feel the slight warmth in temperature, the smell of fresh flowers blooming in the air and the sound of birds chirping in the distance. You have to admit, it’s quite an idyllic time of year. But of course it’s not just nature that blossoms in spring time. Traditionally we find that the Spring property market always appears quite strong, with plenty of properties hitting the market.
There are numerous reasons why spring brings about a boom in property, with the first being that this is the time of year when people feel that their property can be presented in the best way possible. The gardens look great, the house is warm, the grass is green and it’s the perfect time to showcase outdoor features like a pool or tennis court.
Spring also signifies that downward slide towards the end of the year. With most people likely wanting to set themselves up for the following year, they find that September and October are a good time to begin the process of selling in order to be in their new home for the New Year.
McConnell Bourn’s Managing Director Matthew Bourn says that typically at this time of year we see double the amount of properties on the market compared to the front end of the year.
“We tend to find that in the back end of the year, so July to Christmas time, we find about double the amount of properties on the market compared to the front end of the year,” Mr Bourn said.
“Therefore supply tends to slightly overtake demand but we find that the Upper North Shore in particular is such a high demand area that we never have too many properties for our buyers.”
Of course, nobody needs reminding that this is a year like no other, so will the current climate have any major impacts on the usual spring property boom?
“This year with COVID it’s a little bit unknown,” is Matthew Bourn’s response. He says that it’s quite hard to say with certainty what sort of impact this will have but he is hopeful that the market will remain strong across Sydney based on historical data.
“I think to date we can only look at the historical data that so far has been pretty smooth sailing in the sense that property values have sustained reasonably well,” he continued.
“There’s been a little bit of fluctuation of about 5% in Ku-ring-gai, but that amount really could come down to just the value of the properties that have been selling recently as well.”
So if you’re thinking of buying or selling this spring, it really does appear to be business as usual at the moment. But if you are looking for a bit of advice before entering the market, Mr Bourn says that the best thing you can do is be prepared.
For those looking to sell, Mr Bourn says that a property’s value really comes down to three critical things.
“Property values come down to incredible presentation, fantastic marketing and pricing is also critical to make sure you have engagement with lots of buyers walking through.”
In terms of advice for buyers, Matthew Bourn said that they need to forget about this idea of waiting for the bottom of the market to hit in order to secure a lower price. He says that property is a long-term investment that has time and time again proven to increase over time.
“You only know when the bottom of the market is here when it’s bounced 5% back up,” Mr Bourn said. “We see this over and over again. This is a long-term play; that’s what property is.
“What I would say to buyers is that if you find the property of your dreams and you like it, go for it. Lock it in. We know naturally over the last forty years a property has on average increased by about 8.5% per annum across Sydney.
“So the median sales price literally, even throughout things like peaks and troughs and stabilization, has grown at 8.5% on average over the last forty years. So why would that change? History is something to go by.”
Well if history is something to go by, then we can certainly look forward to yet another busy spring in the property market here in Sydney’s upper north shore.
If you’re thinking of selling or looking to buy, please get in contact with our team today on 9496 2777.