We are well and truly in the depths of winter, and the real estate market in Australia presents a unique landscape. Contrary to popular belief, some of the most expensive sales across the country have occurred during the colder months.
A time for luxury transactions
Winter might be a season of hibernation for many, but in the Australian real estate market, it’s a time when high-end properties tend to change hands. Historically, some of the most expensive transactions have taken place during the winter months. For those who are not transacting in the trophy home market, the scarcity of stock can actually work to your advantage, particularly if your property has unique or exceptional qualities that make it stand out. For luxury properties, winter can be an optimal time for selling as serious buyers are always on the lookout, regardless of the season.
Toorak: A Case Study in Seasonal Spikes
Toorak, one of Melbourne’s most prestigious suburbs, offers valuable insights into seasonal market trends. Over the last five years, data has shown that the period between the second and third quarters typically experiences strong upward spikes in property transactions, along with higher values recorded too. This trend suggests that winter months can be strategically beneficial for sellers in this market. If you own a property in a high-demand area like Toorak, leveraging these seasonal spikes could result in a highly profitable sale.
29-31 St Georges Road, Toorak VIC 3142 sold for $80M in August 2022.
17 St Georges Road, Toorak VIC 3142 sold for $74.5M in August 2022.
61 Clinton Road, Toorak VIC 3142 sold for $45M in July 2023.
Average vs. Exceptional: Timing Your Sale
On average, July has been one of the worst months for sale prices in Australia. This statistic might deter the average homeowner from listing their property during winter. However, anyone who has completed basic maths will know medians and averages don’t represent the entirety of the dataset and therefore, the market. For unique properties with distinctive features, winter can present a golden opportunity. The reduced competition and motivated buyers willing to brave the cold can work in favour of sellers with standout homes.
The Best Time to Sell: When You’re Ready
Ultimately, the best time to sell your property is when you’re ready. While market trends and seasonal fluctuations provide useful insights, personal readiness and timing play a crucial role in the success of your sale. Trying to perfectly time the market can be risky and stressful. Instead, focus on preparing your property to its best condition, understanding its unique selling points, and choosing a time that aligns with your personal circumstances.
Winter in Australia might not seem like the ideal time to sell a house at first glance, but for exceptional and unique properties, it can be a season of opportunity. Understanding market trends, especially in high-demand areas like Toorak, and recognizing the distinction between average and exceptional homes can help you make an informed decision. Remember, the best time to sell is when you are ready, equipped with the right strategy, and prepared to showcase your property’s true value.
So, as the temperatures drop, consider heating up your property sale with a well-timed winter listing.