Spring traditionally the most popular time of the year to buy but motivation is strong in March

Spring is traditionally the busiest time of year for the Australian property market as the weather warms up. But listings and buyers are also plentiful in March. 

331/3 Darling Island Rd, Pyrmont, sold in March 2023 for $11.3m.

Spring is the busiest time of year for the Australian property market as the weather warms up and buyers and sellers are out in force. 

This is especially true in Melbourne and Sydney, where the auction market is strongest and buyers gather on the street to bid on the home of their dreams.

But spring is not the only popular time to buy and sell. There is another month of the year when listings are comparatively high, and buyers are plentiful: March.

Sandwiched between the end of the summer months and the start of autumn, March is a popular time to buy or sell before the quiet winter months.

When compared to January, the quietest month of the year, October and November saw the largest increase in new listings nationally, sitting 38 per cent and 37 per cent higher, respectively, over the past five years. Following was March, which came in third nationally at 36 per cent higher.

In Sydney, new listings were 55 per cent higher in October than in January over a five-year average, and March followed closely at 50 per cent higher in the same time period.

In Melbourne, listings were also at their highest in October and November, while March came in just behind, with a 47 per cent increase compared to January listings in the past five years.

Perth and Adelaide show trends similar to Melbourne and Sydney, while activity in Brisbane is slightly different.

 

Over the past five years, new listings in Brisbane were slightly higher in March than in October and November.

The wet season from December to February, coupled with the festive period and school holidays, made March the busiest time of the year in Brisbane.  

Another reason that March is an opportune time to buy is that sale prices are slightly lower than in the spring and summer months.

 Homeowners choosing to sell in November achieve prices around 0.8 per cent higher than the average throughout the year. March follows closely behind, with prices 0.72 per cent higher.

In March, buyers can take advantage of a busy market with more stock to choose from but prices slightly less than you are likely to see between October and December. Another bonus of buying in March is that the number of buyers looking for properties is slightly lower than in the peak months.

 Although demand does rise in March, it has only increased nationally by an average of 8 per cent between January and March in the past three years, compared to a 12 per cent increase in October.

Therefore, you won’t compete with as many property seekers as you would in the spring.

 For example, the number of enquiries per listing nationally on realestate.com.au in March was 5 per cent lower than during the peak month of October over the past three years.

 In March, there were 14 per cent fewer inquiries per listing in Melbourne, 15 per cent fewer in Perth and 4 per cent fewer in Sydney than their peak month. When it comes to auction day or putting in an offer, this means that there will most likely be fewer buyers to contend with for the property.

But it isn’t just good news for buyers; those selling their property in March can also benefit from the buoyant market.

Nationally, sales in March have been 73 per cent higher than in January over the past five years. November was the only month exceeding this growth, with 81 per cent more sales than in January.

Listings are back to medium-term averages. Picture: Julian Andrews

The same is true in Sydney, where average sales in the past five years were 184 per cent higher in March compared to January, in Melbourne, where sales were 131 per cent higher and in Canberra, where sales were 146 per cent higher.

 The seasons do play a role in determining when the peak seasons occur for each state.

 In the warmer states, March is a busy month, but it is less pronounced because the weather is milder throughout the year.

 In Sydney and Melbourne, the seasons are important as agents sell more properties via auction than any other states, so the months when the weather is at its mildest are when more properties are put on the market.

 The winter months in Melbourne, Sydney, Canberra, and Hobart are colder than in the other states, so locals tend to hibernate.

 Although March and November are still the top months for sales in Brisbane, the difference between sales in January and these months is much smaller compared to Sydney and Melbourne. This is also true for the cities of Perth and Adelaide.

January and February are quiet months and tend to see demand for properties decline as families enjoy school holidays.

 March is the first month when everyone is back to work, the weather is good, and property seekers are motivated to find a property before winter.

 If you have missed the spring period and think that you now need to wait until September to consider buying or selling, fear not; March is a good month to dive into the property market.

Karen Dellow is a senior analyst at PropTrack.