When Is The Best Time To Shop For A Home?
08 Jun 2018
Are you thinking about buying a new home but don’t know when to start looking? In this article, we answer many different questions you may have about the best time to buy a home or to put your current home on the market.
When is the best time to buy a home?
According to Business Insider, the best time of year to buy a home is between October and December. This data surfaced from a report conducted by Trulia in the US, which claims starter home inventory peaks at this time of year.
“In 70 of the 100 largest US metros, the number of starter homes on the market reaches its annual peak during this time, meaning those looking to buy their first home will have more to choose from this time of year.”
– Tanya Loudenback, Business Insider
But is this also true for buying homes in Canada?
Global News offers an answer based on data presented by Rokham Fard, the co-founder of online real estate brokerage TheRedPin.com. In their findings, the company determined that the best time to buy in Canada is the third Monday in January– to be specific.
Why is January the best time to buy a home in Canada?
“If someone’s listing a house in the winter, it’s a fairly safe bet that they’re eager sellers and that they’re more open to negotiation. Otherwise, they would wait for the spring.”
– Mark Di Vincenzo to Global News
Therefore, it would seem that across North America, the best time to purchase a new home is in the winter months – ranging from October to February. In these months, buyers are more likely to get a great deal on new properly.
“With homes in January taking an average of 7 days longer to sell versus the rest of the calendar year, homeowners may take less than asking just to complete the sale.”
– Barry Choi, Money We Have
When is the worst time to buy a home?
As you can see, while January is the best month to buy, the worst month to buy is June.
Why is June the worst time to buy a home?
According to the Fit Small Business research, June is the worst month to buy a home as houses tend to sell faster and buyers do not have much time to negotiate a price. The study suggests this pressure may explain why median sales prices peak in June ($307,571) – making it harder to buy a home on a budget.
And while this study was conducted based on home prices in the United States, much of the data being investigated in Canada claims the same. However, the prices are, on average, much higher – the highest prices in 2017 being in Greater Vancouver (over 1 million) and the lowest being Quebec City (just over 250K).
However, for those not as concerned with the price of a home, inventory may be the larger issue at hand. In their study, Fit Small Business says that the selection of homes is scarce by the end of the year and that if the price isn’t an issue, people should buy early in the spring or summer.
When is the most popular time for housing activity?
According to Which Mortgage, spring is the most popular time for housing activity in Canada – as people are typically away on vacation or busy in the summer, don't want to disrupt their kids in the fall (back to school), and don’t want to pack and move in the cold winter.
However, just because spring is the most popular time to shop for a home doesn’t mean it’s the best time to shop from a financial perspective. With deals closing quickly, offers get competitive fast – which is good for sellers but can be bad for buyers.
When’s the best time to sell a home?
In his findings, Rokham Fard determined that May 1stis the best day to sell a home.As reported by Global News, the company came up with this date by analyzing five years of real estate data from the Greater Toronto Area. This data showed that May was the month with the highest number of sales each year – when compared to every other month.
What about shopping for a vacation property or second home?
In their article ‘What You Need to Know About Cottage & Second Home Financing”, The Mortgage Station takes time to answer all of the main questions you may have about purchasing a second home property – from down payments to classifying vacation properties to renting.
It is important to remember that if you are looking to purchase a second home to personally vacation in, you’ll want to buy it when the ground is thawed, and you can have a full view of the property you're looking to invest in.
It is also important to remember that if you are buying the property to rent out to someone else, the rules change, and you’ll want to make your purchase before the busy summer season hits – so that you can make any renovations, decorate, and list the property for rent.
Is it a smart time for Canadian Millennials to purchase property?
We’re not going to lie; most Millennials are in a tough position when it comes to buying a home. However, to help guide you through the process, we’ve collected a few resources that may be helpful:
What tips do I need to remember when buying a new home?
To get the best deal, buy in the winter
To have the most options, buy in the spring
Explore your options (real estate agents, mortgage brokers, etc.)
Think ahead to accommodate your future needs (growing family, etc.)
Finances and inventory aside, don’t forget that purchasing a home also comes down to being emotionally and logically ready to move. For example, if you are thinking about moving jobs or cities, or want to start a family in the next few years, you’ll need to factor those things into your search as well.
In other words, the best time to buy a home is when you’re ready!
Are You Ready To Buy?
If you are ready to look for a new home, we invite you to learn more about our Bradley Homes properties today! At Bradley Homes, we provide transparent, stress-free purchasing process. We strive to help you make the best decision for your family.