When Is The Best Time To Sell?

Sutton Quantum

When Is The Best Time To Sell?

"When is the best time to put my house on the market?” Our agents hear this question from homeowners all the time, and for good reason. Most people looking to sell think that the best time to place their home on the market is when the tulips come up, because the snow has melted and that’s when their home will show its best. What most people don’t realize is that by that point you may have already missed the critical period to get the most for your home.

Supply and Demand

Of the many factors that influence real estate prices, supply and demand are arguably the most crucial. The supply of available homes for sale is typically much lower from early January through mid April, after which time many homeowners choose to sell. The spring market is a huge draw - homes stage well, school is ending, and no one wants to pack up and move in the dead of winter if they have a choice. We get it! The one problem with this scenario is that when every seller puts their home on the market at the same time, the increased supply creates a buyers market and therefore won’t net the seller as high a price as they could get otherwise.

The pattern of sales throughout the GTA over a typical year tends to be higher at the beginning of January to the end of March. Sales then decline slowly until August, picking up in September through November then slowing down over the holiday season. These are average sales results but of course are subject to occasional exceptions. There are many other factors that affect the real estate market and the timing of when you sell your home.

The Economy As A Whole

This is everything else including employment figures, personal debt levels, and the state of world economies affect when to sell your home, as witnessed by the relatively recent European crisis. From September 2008 to March 2009, for instance, many Canadians experienced firsthand how world economies can influence the GTA real estate market. The financial crisis in the US triggered government bank bailouts and brought our real estate market to a halt - but only temporarily. Fear and uncertainty were for a brief time the order of the day, and GTA real estate prices dropped by approximately 15% in a matter of months.

Government Rules

Changes to mortgage rules, such as the implementation of the Stress Test on mortgage applicants last spring, have been proven to greatly influence affordability and real estate values as well. The effect of these changes became evident first in the spring and summer of 2018, when housing prices fell. When mortgage rates climb, buyers tend to get spooked so there's less demand for homes, thus bringing down prices. Other factors such as the increase in taxes on the sale of homes, the Land Transfer Tax, an increase in property taxes, and other fees, all affect real estate prices as well.

The moral of the story is that timing IS everything, but assessing the right time is also an instinct that only comes with experience and an understanding of the real estate market. Our skilled agents will be able to help you analyze the current market conditions and advise you on the best time to sell your home. Speak with one ofour agentstoday!