Is before Christmas a good time to buy a house? For many Aussies, it's the ultimate time
It’s the best present anyone can ever imagine: the successful purchase of a new home in time for everyone to move in and celebrate the holiday season as a family.
But what about the existing tenants? Well, a number of people who’ve managed to buy on a rising tide of festive fear of missing out (FOMO) are still making sure that the Christmas spirit lives on.
“It’s been amazing but I’ve had at least two sets of buyers who were looking forward to moving in for Christmas holding off instead,” says Laing Real Estate managing director Vicki Laing.
“It’s because they don’t want the tenants who’ve been living there turfed out at this time of year. They’ve all been renters before and know how tough it is out there, and they’re keen to make sure no one suffers. It’s absolutely heart-warming to see.”
That sense of seasonal goodwill seems to be permeating the entire national market, as property owners, buyers, investors and vendors all sympathise with the plight of those struggling with rock-bottom vacancy rates and sky-high rents.
Yet, due to those pressures, there’s never been more incentive for first-time buyers to take the plunge.
“We’re seeing those people who are in a position to buy being very keen to buy, as they want to get out of paying rent in what’s the worst rental market I’ve seen in 35 years,” Laing says of the Sydney market. “Many of those would love to buy before Christmas.
“But then interest rates are high, and may go up one more time, so people are nervous about committing too much money. It’s a catch-22 for them. But we’re seeing lots of mums and dads backing their kids, so hoping that they’ll manage.”
In Melbourne, there’s been a similar rush of Yuletide yearning for a good buy in time for the holidays.
Gowan Stubbings, executive director of Kay & Burton, says those with the means are bidding on multiple properties on their Christmas shopping list.
“One man made offers on three to four homes and then finally managed to buy one of them last Thursday,” he says. “People are impatient to have the deals done, and they don’t want to go another Christmas without having a good home in their portfolio as they go into the New Year.
“For agents and vendors, it’s nice to see that FOMO, but it can be hard for buyers. With such a shortage of stock, we’re seeing them broadening their searches and trying other locations as well as their favourite.”
Fellow Melbourne agent, Marshall White director John Bongiorno, has also seen buyers at this time of year eager to get settled as soon as they can, in the hope of unwrapping presents around a Christmas tree in their own home.
“But then buyers aren’t getting too carried away and making bad, hasty decisions,” he says. “They’re making decisions for the right reasons, which makes it feel more like a normal market – for the first time in five years.
“The demand is out there, particularly for turnkey properties that don’t need renovations or building work, and for those kinds of homes, we’re seeing some pretty phenomenal results. We think next year will continue to be strong and we’re already getting auctions set up for January and February.”
The Australian property market is also being buoyed by overseas buyer demand, believes Brisbane’s Judi O’Dea of Ray White Paddington.
Encouraged by the stability of our national economy, weak Australian dollar and volatility elsewhere, buyers from China, Singapore, Hong Kong, the UK and the US are keen to either invest or own and occupy.
“We’re seeing very strong FOMO here now,” O’Dea says. “It’s been going on for two years now and shows no sign of easing even with all the increases in interest rates and the rising cost of living. We conducted 13 auctions at the weekend and sold 12 properties, and our figures are very, very strong.
Among those O’Dea sold at auction on the weekend was a three-bedroom cottage on 202 square metres of land at 31 Terrace Street, Paddington.
It had four registered bidders and sold under the hammer for $1.31 million.
“We believe we’re also seeing a Christmas rush because of all the trouble in the world right now,” she says. “Whenever there are difficulties, we tend to see people retreating into their homes and seeing them as their kingdoms, and wanting to bunker down a little bit. So for those who don’t have a home, or one that’s suitable for their needs, there’s even more of a pull to get one.”
The global political upheaval often affects the ACT property market – as the site of the federal government – even more, believes Dan McAlpine, co-principal of Belle Property Canberra and Queanbeyan.
That gloom, coupled with a surge of new stock, has turned the ACT into a buyers’ market.
“So, buyers have a huge amount of choice here, and the average four-bedroom house in the Inner South might sit on the market for 120 days,” he says. “Public service wages are likely to rise next year, so a little bit more FOMO might then come back …”
While the higher end of the Sydney market is still jingling with Christmas FOMO, the lower end has started to wind down for the season, says Debbie Donnelley of PPD Real Estate.
“The latest rise in interest rates put a bit of a damper on Christmas FOMO,” Donnelley said. “But we think it might well fire up again in the New Year.
We recommend
We thought you might like
States
Capital Cities
Capital Cities - Rentals
Popular Areas
Allhomes
More
