Should I Wait Until Spring to Sell?
Should I wait until spring to sell?
After all, the most common fallacy in real estate is that the spring market is stronger. But is it? Well, what are we ranking the strength by? The number of sales or the number of buyers?
Sure, the lion’s share of volume may be turned over in the spring, but if you are a seller does that turnover necessarily mean it’s the best time to list?
Look, when deciding to list your house, forget when most of the houses sell. Instead focus on when the most amount of buyers shop with the least amount of choice.
It’s important to understand that there are really only two big buyer cycles in a real estate calendar year: buyers who want to get in before summer, and buyers that want to get in before Christmas. These two time periods probably influence buyers more than anything else except for, “that house finally hitting the market.”
Make no mistake, this is not a complete hard and fast rule. There are always exceptions.
Homes will sell at Christmas this year, and homes will sell in August, or on Thanksgiving. There is a buyer for everything. To really put the odds in your favour as a seller though, you should look to these two seasonal patterns when deciding the right time to list.
For example, if you need a March closing and you list in October or November, the majority of your purchasing audience is already hoping to buy a Christmas tree for your house. Is that everyone? No, but how can you expect to get the most value for your home with a watered-down audience where only a portion of them can accommodate your closing? January and February can be an excellent time to list.
Many don’t realize this, but several buying decisions are made when we spend those special times at home.
The Christmas tree branch is blocking the TV, or the foyer is too crowded for guests arriving, or there isn’t enough parking for your guests. Maybe it’s a combination of that and too much eggnog, but the fist slams down and someone comments, “maybe after the holidays we start looking for a home.”
By the same token, most buyers looking for a property approaching December will eventually lose optimism that they will be able to purchase and be settled before the holidays. With Christmas music and the obligations of the holidays moving to the forefront of everyone’s lives, the supply of new listings slows as we work our way through December. Ultimately, the search is back burnered until the holidays are over. Trust me, I have these conversations with my buyer clients every year.
Think about how many buyers can be ready to go just after New Year’s Eve; you have everyone who put their search on hold only to pick it up again into the new year, plus the new buyers who have made the decision over the holidays to move.
People start to connect or reconnect with Realtors about their needs after life gets normal again, which means a large buyer audience is ready for houses to hit the market in the new year.
This cycle is echoed throughout the summer as well.
Buyers lose hope that their purchase will happen before summer and decide to get out camping one last time, or start to get those back to school to-do lists checked off.
And after Labour Day? Same thing as after New Years.
Buyers who were not able to fulfill their goals before the end of summer pick up where they left off, and new buyers who went for one too many swims at other people’s homes start to focus on their next house – a decision made over the holidays.
These first two cycles of the year, after New Years and post Labour Day can be some of our strongest selling periods. Supply levels are not quite caught up yet and buyers are ready to fulfill their goals.
Now, I must finish by saying if you need to list approaching some of the less vibrant times of year I’ve described above and you don’t have the luxury of timing it better, feel free to throw this article right over your shoulder.
Guelph’s strong market usually offers success to sellers year-round.
This article isn’t meant to discourage, but rather to answer that common question “when is the best time to list”. If the option is there, it’s worth considering.
And if you can’t list at the times above?
So when people ask me “Should I wait until spring to sell”, after 16 years of selling homes I have come to realize it’s the smaller efforts that often have the biggest impact.
Truthfully, I have made my career out of always doing just that. My clients count on it regardless of the season.
Navigating the real estate landscape Welcome to the first instalment of our monthly series dedicated to Baby Boomers and even some Gen X’ers navigating the real estate landscape and embracing lifestyle changes. In this series, we will delve into various aspects of the home-selling journey, offering valuable tips and insights specifically tailored to the unique needs of this demographic. The decision to sell your home as a baby boomer is often more than a transaction; it's a pivotal moment that marks a new chapter in your life. Whether you're an empty nester looking to downsize, seeking financial freedom, or simply ready for a change, this series aims to be your comprehensive guide. In this inaugural article, we'll explore why now might be the right time for baby boomers to sell their homes. From the emotional aspects of letting go to the practical considerations of market dynamics, we'll cover it all. Without further ado, let's dive into the first topic: Embracing Change – Why Now Might Be the Right Time for Baby Boomers and even some Gen X’ers to Sell Their Homes. As the winds of change sweep through the real estate landscape, many baby boomers are contemplating a significant life decision – selling their homes. While the emotional attachment to a home can be strong, there are compelling reasons why now might be the opportune moment for baby boomers to make this transition. Empty Nest Syndrome: The kids have flown the coop, and the once vibrant family home might feel a bit too spacious now. Downsizing can not only reduce maintenance costs but also provide a newfound sense of freedom and simplicity. Financial Freedom: With property values having likely risen considerably from the time you purchased your first home, selling and downsizing can provide a substantial financial windfall. If you are Gen X or Baby Boomer, this is a tremendous opportunity to bolster your retirement savings, embark on new adventures, or even assist your children with their own housing endeavours, while simultaneously simplifying your life. Maintenance and Upkeep: As homes age, the upkeep and maintenance demands can become more burdensome. Selling your home now could mean leaving behind the hassle of constant repairs and yard work, allowing you to enjoy a more relaxed and maintenance-free lifestyle. Shifting Market Dynamics: The real estate market is ever-changing, and keeping a close eye on current trends is essential. With high demand and low inventory in many regions, baby boomers may find themselves in a seller's market, potentially fetching an optimal price for their property. Even when the overall market has cooled, as it has over the past 18 months, there are always properties where it doesn’t matter what the market is doing, demand will always remain high with Sellers still fetching a premium for their homes. Lifestyle Changes: As Gen X or Baby Boomers entering a new phase of life, your lifestyle preferences may evolve. Selling the family home can open the door to new living arrangements that better align with current interests, whether that be a smaller residence, a retirement community, or even a travel-centric lifestyle. While the decision to sell a home is deeply personal, considering the current market conditions, lifestyle changes, and financial opportunities can help you make an informed choice. Embracing change and seizing the moment might just lead to a more fulfilling and comfortable future. If you feel you may be ready to embark on a new chapter, explore different living arrangements, or capitalize on the current market dynamics, or, you're a baby boomer that is contemplating the sale of your home, let's have a conversation. Together, we can explore your options, discuss market trends, and create a personalized strategy to maximize the value of your property. Contact me today to schedule a complimentary consultation. Let's turn the page and embark on this exciting journey together. Your next adventure awaits! Written by: Tom Hillson, Sales Representative
Purchasing a home in the current market In September there was a lot of talk on the return of the real estate summer slowdown. I addressed the concern and panic among some sellers in my newsletter, and how this shift is an integral part of the ever-evolving real estate landscape. This volume will focus on the advantages of being a purchaser in the current market. Healthy Market Stability: While the market's pace may have slowed down, it’s important to recognize that this is a sign of a healthy and balanced market. Buyers now have the opportunity to conduct thorough due diligence before finalizing a property purchase. Conditions like financing, inspections, and sale of property are back in play, allowing buyers to make informed decisions. Fixed Interest Rates: The topic of interest rates has recently experienced day-to-day fluctuations. With the Bank of Canada bond yields decreasing this week, we anticipate a continued reduction in fixed mortgage rates. It's important to note that bond yields and fixed mortgage rates have a direct connection. Meaning when bond yields lower, fixed interest rates decrease. Although lenders have begun to reduce their fixed rates, the decrease is not as significant as the fall in bond yields. Current rates for an insurable 5-year fixed are 5.75%. Lenders rates tend to take the elevator on the way up and the stairs on the way down. Overall this is excellent news for anyone with a mortgage renewal approaching in the near future.
Real estate in Guelph I am not going to pretend I know what is going to happen, but with so many people asking me, it’s only fair I try. I mean, I have my opinions, and I will continue to make my personal decisions when it comes to real estate and investing based on them – and when my clients ask, I will share how I feel. So, how do I feel about the real estate market? Well, actually pretty good. And how did I feel last month? Well, pretty good. What about a month from now? Yes, pretty darn good. How can you feel good about something that so many are feeling bad about? Well, I am not quite sure that the owning of real estate, or the homes people want, or the investments they hope to make have people feeling bad; I imagine it is more about the new interest rates. Let’s look at the investment of real estate first. Whether you are renting it out or living in it, it is a choice of what to do with your money. For the people that are living in it, it’s great to know that it is an investment, because you have to spend money on housing regardless. When we look at any investment we always ask ourselves, “Does this make sense?” The simplest way I can look at real estate and answer that question is to say, I have a product and the people that want and need this product are growing, and the availability of this product does not seem to be doing the same. Describing it this way helps make the most sense to me. I guess I could say the same thing about Coca Cola, but there is Pepsi, Sprite, water, beer, and this Prime drink that my kids won’t stop talking about (don’t get me started). So real estate as an investment makes sense, as there is no alternative to housing. What about everything I am reading about prices going down? Well, real estate prices are going down now, since the rates people use to afford them have gone up. When the rates go down, you know the prices will start to climb again. The market is very healthy – I have been saying this for months. The reason we’ve noticed some homes not selling is due to the sellers adjusting their price expectations downwards slower than the buyers are. The sellers are still willing to accept the price of a spring ago, but the buyers are the ones calculating the interest rate. When rates go up that quickly, it’s hard for sellers to accept things fast enough, so buyers wait, and one by one new sales prices give data to sellers that say “You see, these are the new prices,” and a reluctant decision takes place by way of a price adjustment and then another sale happens. In the spring market of 2022 prices rose but when interest rates started to climb prices fell. Although real estate goals still existed, and people still wanted to invest, the falling prices is what grabbed the headlines, so that healthy underbelly lies just below the surface. Now here we are, in the early part of the year and what can sometimes be the barometer of how our real estate market will perform. How is it going? Well, the supply and demand levels have once again tipped in a slight favour of the seller, but buyers armed with a different interest rate are taking a more calculated approach instead of having a fear of missing out. To conclude, a properly priced home will sell, an underpriced one will sell for over asking, and an overpriced home won’t sell at all. You see, nothing to see here, just a regular old spring market in Guelph. Thanks for reading, and I thought this quote would be fitting. “When the market is greedy, I get scared. When the market is scared, I get greedy.” -Warren Buffet
