There are a lot of factors that can affect how and when a property will sell. The overall condition of the real estate market in a certain area can change frequently as a result of how the economy as a whole is doing, what current interest rates are, and employment opportunities in the area. But believe it or not, the time of the year plays a big part in how a home will sell, too. So, what is the best time of the year to sell and buy a home?
Patterns in the market
Although it may differ depending on the area, the real estate market is generally considered to be cyclical. This can directly affect how the buying and selling process plays out for you, so you need to be aware of the real estate patterns in your area. Find out what the most common times of the year for people buying homes are, and make sure your mortgage pre-approval, budget for mortgage payments and other paperwork have been worked out beforehand. This will help you ensure that you're ready to buy or sell at the right time.
When is the best time of the year to buy or sell a home?
According to data collected by the Canadian Real Estate Association (CREA) from 2007-2016, May and June tend to have the highest sales totals. This is the result of a few different elements. Firstly, the months that generally have the greatest number of real estate listings posted are April and May. It makes sense that the more listings that there are, the more sales will follow.
No matter what the market is like where you’re trying to buy or sell, spring is the most common time for housing activity. The weather is nicer and things start to bloom. It can provide a feeling of new beginnings. Home sellers start getting their properties ready to sell and buyers begin looking in anticipation for their new dream home.
Homes also tend to look their best in spring after the snow has melted and plants and gardens start to turn green. This makes homes more pleasing to look at during virtual viewings and for people who drive by the house to check it out.
When is the worst time to buy or sell a home?
On the opposite end of the spectrum, according to the same CREA data, the worse time of the year to buy or sell a home is in December. The last month of the year is typically cold, dreary and it brings about the holiday season. For most people, the holiday season is stressful enough without the added pressures of trying to find a house to buy or getting a home ready to sell. Money always becomes a little tighter around this time of the year as well, and homeowners become less willing to overspend. Plus, as anyone who has moved during the winter knows, a blizzard or snowstorm can come out of nowhere and put a real damper on your moving day.
Of course, it's not always possible to choose when you sell or buy your home, but if you do have some flexibility then keep the season in mind!
