How weather, planes and school zones directly impact property prices

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A recent UTS study has revealed that weather plays an integral part in auction day results.

A sunny or hot day can result in paying thousands more on auction day, as opposed to a dreary or rainy day. Surprisingly weather does appear to have an effect on people and the price they’re willing to pay.

The study has proven, that while buying property is the largest investment most people will ever make, it doesn’t mean it is completely driven by rational decision making.

On average, a sunny day will increase auction property prices by 1% compared to overcast days. A 10-degree higher temperature leads to 0.64% or $7400 increase in auction price.

Not surprisingly, the study revealed that property sold for less around long weekends and public holidays as less people attended.

Traditionally, noise pollution, in particular aircraft noise has been off-putting for some buyers, although house prices tend to be discounted approximately 1% per decibel of aircraft noise.

First homebuyers are finding this compromise a small price to pay to enter the property market while still being conveniently located and close to CBD.

Another strong correlation to increased property prices is proximity to good schools.

A 5% increase in school quality (as measured by NAPLAN testing) results in 1% property price increases.

If you don’t need to consider schooling for children, then avoiding top schools can have a big impact on property prices. Even a few streets away from a top school, regardless of catchment area, results in approximately 40% less inspections an inturn a 5-10% lower auction sale price.

If you’re struggling purchase a home, consider negotiating or attending auction on a cold, rainy day, consider if you’re willing to compromise on some noise pollution and avoid top school zones.

Alternatively, speak to a property-buying expert who can search out the right property for the best price and negotiate on your behalf to make sure you don’t overpay.

1300 132 970 for a confidential conversation on how we can help you buy a property in the current competitive market.