WET weather on an auction day could save home buyers tens of thousands of dollars, new research has found.
A study conducted by buyers advocate firm Secret Agent found home buyers saved an average $46,500 at auction on days when the heavens opened last year.
With winter officially here and this weekend hosting a near record number of auctions for this time of year, there might be a few prospective buyers considering a rain dance.
The Secret Agent study reviewed auctions from June to August in 2012 and contrasted the average result on a Saturday afternoon with less than 4mm of rain against those with more than 4mm.
On the dry days the average sale at auction was $1,003,300.
But add water and the price fell to $956,800.
It works out to about a five per cent reduction in prices.
“The weather conditions can play a part in the crucial point where someone is working out what they are willing to spend,” Mr Osborne said.
“On a good day, the weather can help people see the property in its best light.”
“On a rainy day a lot of people might pull their budget in.”
But Mr Osborne noted that despite the potential for some loss to the maximum price tag on a rainy day, selling a house in winter could be an advantage.
“There’s less auctions to choose from, which is good for competition,” he said.
But despite showers being predicted today, home sellers need not fear – according to Real Estate Institute of Victoria spokesman Robert Larocca.
“A sunny auction might be a more enjoyable one, but it doesn’t mean you are getting a better result,” Mr Larocca said.
“The result on any given weekend is dependent on the stock as well as the market sentiment.”
Despite predictions of showers this weekend Mr Larocca argued that the research hadn’t ascertained where the rain had fallen and that a bit of weather wasn’t going to stop a buyer who really wants a property from heading out to one of the 790 or so properties listed for auction this weekend.
“It’s the second largest auction weekend after the Queen’s Birthday weekend in our market’s history,” Mr Larocca said.
“It conveys that vendor confidence levels are healthy.”