As we drift into December, the Australian property market cools down while holiday festivities heat up.

The weeks before Christmas may feel like a whirlwind of end-of-year parties, sun-drenched beaches, and gift lists, but here’s the twist: this overlooked period could be prime time for serious, savvy buyers to make a deal on a home.

If you’re a first home buyer in Sydney or across Australia, buying in the lead-up to Christmas might just be the gift you never knew you needed.

Below we’ll explore why these weeks can be ripe for negotiation. We’ll show you how you can manoeuvre the holiday season to work in your favour as a home buyer.

Sellers are Eager (or Desperate) to Exchange Contracts Before Year’s End

By December, many sellers are emotionally and financially drained. Listing a home is a process – with styling, twice weekly open inspections and constant life intrusion – the seller is typically anxious to close the sale before the holiday break. Combine this with the general end-of-year fatigue, and you may have a seller who’s ready to negotiate.

The holiday period also means reduced buyer activity – most people are busy organizing summer holidays or ticking off their Christmas shopping. But if you’re serious about buying, this is precisely the moment to strike. Fewer competitors mean fewer bidding wars and potentially less pressure from other buyers.

According to CoreLogic’s data, property listings typically dip by 20-30% in the lead-up to Christmas, while the median time on market often increases. Sellers know that if they don’t sell now, they’ll be holding the property until mid-January or later, when the market reopens – sometimes with added costs like mortgage repayments, maintenance, and tax implications.

Think of it as a reverse Black Friday sale – except this time, you’re the only shopper in the store, and the sellers are more than ready to hand you a “deal.”

You can learn more about holiday-season property trends at CoreLogic’s Property Market Insights here: https://www.corelogic.com.au/.

Leverage Lower Competition to Take Your Time

While spring tends to be peak property season in Australia, with prospective buyers swarming open houses and auctions, the holiday season is a stark contrast.

Many potential buyers take a break toward Christmas, giving the savvy shopper a unique window to negotiate without the usual competitive frenzy. If you’re after a home in Sydney or any other bustling market, this might be your best chance to view properties with more breathing room and less pressure.

This period isn’t just about fewer buyers, either. Real estate agents and sellers are often eager to wrap up deals before the holiday break, making them more receptive to offers that they might have brushed aside in a busier market.

SQM Research shows that auction clearance rates drop by as much as 10% in December compared to spring. This means buyer leverage pre-holiday season.

It’s like the property market’s own version of “Silent Night” – without the usual chorus of eager buyers raising their bids. Perfect for the quiet, strategic buyer who knows when to make a move.

Check out SQM Research’s data on seasonal auction clearance rates at SQM Research Property Insights: https://www.sqmresearch.com.au.

Interest Rates and Financial Settlements: Timing Is Everything

As December rolls in, the Reserve Bank of Australia (RBA) generally takes a break from major decisions, meaning you won’t face immediate changes to your mortgage rate.

Securing a home in December lets you potentially lock in rates that might be revised by February – making this a strong time to finalize financing before any RBA surprises in the new year.

For first-home buyers who are taking advantage of government incentives like the First Home Owner Grant or First Home Loan Deposit Scheme, the timing may also work to their advantage. Financial institutions often have end-of-year quotas and may be more flexible or generous in the holiday spirit, offering deals and incentives that wouldn’t be available during busier periods.

According to Domain, over 70% of buyers who secured financing during December 2023 received favorable terms compared to buyers who waited until early 2024.

Taking advantage of the end-of-year push can mean you lock in better mortgage terms, saving thousands over the life of your loan. Think of it as securing your mortgage rate’s “New Year’s resolution” – set before everyone else, minus the January rush of rate adjustments.

Explore Domain’s insights on financing advantages at year-end at Domain Finance Insights: https://www.domain.com.au/finance.

Avoid Holiday “FOMO” and Make Smart Decisions

Before you start ringing up the moving trucks, let’s discuss the mindset you’ll need to make the most of a holiday property purchase. As appealing as the holiday window is, it’s crucial not to rush into a decision.

1. Do Your Research: Understanding the market value in your target area is key. CoreLogic’s and Domain’s suburb reports can offer critical insights.
2. Stay Disciplined: Just because a property hasn’t sold one week on-market doesn’t mean it’s going to be a steal. Work with a trusted Buyers Advocate who can help you navigate pricing, especially if you’re facing unique quirks with the property.
3. Negotiate Strategically: End-of-year sellers may be more open to incentives – ask for minor repairs, request furniture inclusions, or even push for a reduced price based on comparable sales in the area.

You can get suburb-specific property data from CoreLogic at CoreLogic Suburb Reports: https://www.corelogic.com.au/suburb-reports.

How Kitty & Miles Can Make Your Holiday House Hunt a Breeze

Navigating the holiday property market takes skill, timing, and a deep understanding of market dynamics. That’s where Kitty & Miles, your trusted Real Estate Buyers Agent comes in.

Whether you’re looking for a family home in the heart of Sydney or a first step onto the property ladder, we offer the guidance you need to make informed, strategic choices. With expert negotiation tactics and extensive, high level knowledge, we’re here to ensure that this festive season, you unwrap a deal that truly sparkles.

Don’t let the holiday rush or end-of-year fatigue get in the way of making a smart decision. Contact Kitty & Miles today to turn the pre-Christmas property lull into your greatest advantage.

Email or call us to schedule an introductory consultation and let us guide you on your property journey this season!

In Summary

While everyone else is busy with holiday plans, first-home buyers willing to act strategically can find serious opportunities. The quieter market, motivated sellers, and financial advantages present a unique set of conditions that may be just right for savvy buyers ready to take the plunge. As property prices climb, especially in hot markets like Sydney, knowing how to play your cards right in December could mean saving thousands.

So, if you’re ready to turn this holiday season into your property-buying season, don’t hesitate – start your journey with a Property Buyers Agent in Sydney like Kitty & Miles to help navigate the market, secure the best deals, and make this Christmas one to remember.