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Just As Many Houses Sell Over The Winter Months (True Or False)

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Contributor:
Brian Dalley
Brian Dalley

Was that statement just an exaggeration to kick-start a sluggish real estate market?

Watching the interview with Alistair Helm on ASB Business the other day I guess some could have been excused for feeling sceptical as to Alistair’s comments;

“Just as many houses on average sell over the winter months…”

The reason being, that comment was made after agreeing that over the last couple of months, sales volumes had been lower than expected.

I can understand why people would think that way and maybe he was trying to pump up the industry, however I tend to agree with him and would go a little further and say it is advisable to buy/invest in a residential property in the colder damp months of the year.

Think about why house sales peek when the sun is shining.

A big rush of property listings last month raised the possibility that sales volumes might finally rise and house prises could again come under pressure.

Personally I feel in the short term any sharp rise is sales volumes is unlikely, excluding the bottom end of the market which always tracks well. However, towards the end of the year we may see volumes described as steady but for the next few months at least, I think the buzzword will be subdued.

How will this effect pricing? I don’t really think it will.

Well you may see some vendors reduce prices to move on but as they would be buying on the same market they would pick up the reduction on the purchase so in the end will be better off.

With interest rates set to rise later in the year at levels likely to be less drastic than first thought, this could see an increase in building activity which would then flow onto the more established properties.

Although it will be a little hard to get motivated as temperatures drop, I would suggest you don the warm gear and get out there, as great opportunities are to be found in such environments and these days a lot of the groundwork can be done from the comfort of your home.

Just as many houses sell over the winter months true or false? Who really cares?

The most important thing to remember when one thinks about real estate is why we are buying it in the first place.

When one takes time to think about it, the reasons are many and varied, yet generally it is for what it will do for us and that is to house us and our family, or maybe to offer some form of return on investment.

Either way the key to any purchase is affordability and not the time of the year. 

I stand by what I said, and that is I personally prefer to make my decisions when a property looks its worst.

I am aware that not all will agree but whether it is now, in a few months, or towards the end of the year and it is change you want, you must put a foot forward for that to happen, and there is never a better time to do that than the present.

Brian Dalley is a leading Property Consultant | former NZMBA Mortgage Broker and Real Estate Agent.  You can read more of his views and opinions on his website www.propertyprofit.co.nz.   

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