Traditionally, auction numbers reduce during winter – and due to Covid-19 the reduction has been even more severe – but the traditional mindset of a ‘quiet winter market’ needs to be broken given the current climate, according to Australian virtual auction platform SoldOnline.
Listings numbers are low but what is listed is selling at pre-covid values, according to leading Australian auctioneer and founder of SoldOnline, David Scholes. For example, a West Footscray property sold on Monday, July 17 for $740,000 through SoldOnline, despite the property being located in a locked-down suburb.
“It requires a shift in mindset, but winter is actually the time to list in 2020,” said Mr Scholes.
“If I had a property to sell, I would not hesitate to list it this winter. Premium prices are generated whenever a lack of housing supply is evident.
“Prices in most metropolitan suburbs are holding at the moment. Why risk a market downturn later in the year and potentially an oversupply of properties come spring?”
To build vendor confidence, Scholes said it was all about plenty of communication and presenting solutions to the most common mental roadblocks vendors may have about listing in winter.
“Buyers will overlook a dull winter garden if you show them a photograph of what it looks like in the warmer months or provide a list of the plants and how they will bloom. Meanwhile, creating a cosy home atmosphere in winter with heating, candles and interior textures will have a similar psychological appeal to buyers as an open plan home on a summer day would.
“It also helps to have a plan b for vendors – if a face-to-face auction suddenly can’t go ahead, there should be a clear alternative, such as using an online platform.
“We certainly expect to see an increase in demand for online auctions from agents in Melbourne as restrictions expand through that state.”
According to Brandon Changtime, Agent at Benlor Real Estate, securing a first sale through SoldOnline with the recent Footscray sale, is certainly a good reason to use the online platform for future sales, especially during this traditionally slower season in winter.
“With the second round of restrictions suddenly placed on us last week, I had to cancel the property’s planned auction for 11th July and look for another way to sell the property. SoldOnline came to the rescue and with clear communication and assistance from David Scholes, I was in turn, able to educate both the vendor and interested buyers in how to use and embrace the platform, Brandan said.
“It is a silly fallacy that you should not sell during winter. There are buyers wanting to purchase properties all year round, so we need to be inventive in how to connect the buyers and the properties for sale. SoldOnline is a great example in how buyers and vendors can embrace the technology and get the result they want.”