Are you looking to buy or sell property? Timing in the property market is essential for either process. Picture: Freepik
Homeowners looking to sell their properties don’t have the luxury of time, however, those who are under less pressure can strategically time the sale of their property which can have a significant impact on the final sale price.
This is according to Cobus Odendaal, CEO, Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg.
Odendaal added that buyers who can be flexible with their purchase timeline may find opportunities to secure better deals.
“While it's true that the best time to buy or sell largely depends on individual circumstances, understanding market dynamics can help you maximise your advantage in real estate transactions and, if you’re an investor purchaser, it’s even more pertinent,” Odendaal said.
Buyers as well as sellers must remember that the property market is cyclical and influenced by various factors, therefore, timing their entry or exit strategically can offer them various advantages.
Here are five key factors that influence the best times to buy or sell a home:
Odendaal said that real estate markets often follow seasonal patterns and Spring is typically the busiest season for home sales as homes often look their best with blooming gardens, and families prefer to move in time for kids to start new schools.
In Summer, the market is still active but can slow down for a period as people focus on their holidays and then getting back to school or work after the festive season.
Autumn is a bit quieter but has steady activity as people settle into the new year and begin to make plans. The slowest season is generally Winter, but serious buyers are still active, and less competition can be advantageous for both buyers and sellers.
According to Odendaal, sellers should consider listing in Spring or late Summer/early Eutumn to capitalise on higher demand, while buyers might find better deals in Winter when there's less competition.
National and local economic conditions play a vital role in real estate markets.
– Lower interest rates typically stimulate buying activity as mortgages become more affordable, while rising rates might motivate buyers to act quickly before further increases.
– Employment rates as strong job markets often correspond with increased home buying activity.
– GDP growth and a growing economy generally supports a robust housing market.
Those who are in the property market should monitor economic forecasts and consider selling when indicators suggest strong economic growth.
Buyers might find opportunities when economic uncertainty causes some sellers to lower prices.
Odendaal said that real estate is inherently local and conditions can vary significantly between areas.
– Supply and demand: A low inventory of properties for sale generally favours sellers, while an excess amount of listings can benefit buyers.
– Days on market: If properties in your area are selling quickly, it's likely a seller's market.
– Price trends: Consistently rising home prices indicate a strong seller's market, while stagnant or falling prices might signal opportunities for buyers.
Property buyers or sellers should research local market reports, look at the market history for the previous five years, consult with local real estate agents, and track online listings to gauge your local market conditions.
Sell property when inventory is low and demand is high, buy property when inventory is high and demand is low.
Upcoming developments in your area can have a significant impact property values.
“For instance, improved accessibility provided by new transportation links often boosts property values and commercial development like shopping centres or business parks can improve an area's desirability,” Odendaal said.
Be informed about local development plans in the areas and consider selling after positive changes are announced but before they are completed to capitalise on anticipation.
Buyers might find deals in areas with planned improvements that have not effected the property prices.
Odendaal said that government policies can have profound impact on real estate markets.
Changes in property taxes or mortgage interest deductions can have an impact on buying and selling decisions. Government initiatives aimed at growing homeownership or regulating the rental market can shift market dynamics.
New regulations in zoning laws can also impact property values and development potential, especially in areas with growing commercial hubs.
It is essential that buyers and sellers stay informed about potential policy changes at both a local and a national level, considering the impact it might have on property value or buying power, and time your transactions accordingly.
IOL Property