With Canadian home prices rising steadily this year, home buyers are focusing on the summer and spring months to procure their dream home. With the rise in inventory and potential for growth across multiple regions, buyers are increasingly looking at the right house with the right mortgage solution.
Compared to general winter month trends, the inventory may be on the lower end with the buyer having to dig for the right property at the right location. You may get a lower overall price point for a house, but there may be fewer houses during the Thanksgiving and Christmas months.
It’s also important to understand that activity can fluctuate within specific seasons as well. E.g., home sales fell 1.7% between March and April of this year. You can still get a great house during any time of the season, when you can work with the right broker.
Spring may be the busiest time of the year
The spring season brings with it a range of new properties and new sellers into the market. There is significant amount of activity within the real estate market in Canada during this time. You can expect to see a larger number of homes, across Condos, apartments, houses, etc., with greater buyer activity.
You can also find sudden rising in interest during new program announcements, holiday long weekends, and other periods of high activity. These can be important to track during the spring season as the market may be filled with more buyers during this period.
You can also find the sales-to-new listings ratio at around 53.4% this year in April. This indicates that there are new listings available, with comparatively lower sales, which means that you can get a wider range of more affordable houses.
For many buyers Spring will be the right time to explore houses and put down an offer for their dream home.
What about the Fall – August onwards?
While the market peaks around June and July, it is expected to fall around August onwards. You can expect to see lesser number of houses in the listing in your preferred area. You can also expect the prices to lower down as well as we head towards October.
You can benefit from more favourable prices during this period, especially if there is an expected interest rate drop during this period. You may also see pockets within high value cities, such as Montreal and Toronto, where housing prices may be more favourable for prospective home buyers.
The winter time may be the right season for lower inventory and prices
The winter time in Canada is characterised by fewer buyers in the housing market. It may generally be considered the best time to buy a house when you’re looking at a low inventory and low price approach. You may have lesser number of houses available, with fewer buyers, allowing you to benefit from a more favourable environment.
You can explore a smaller subset of houses, but get more time to think about a decision and lock-in a final price point. Home sellers may also be more open to new offers if they haven’t considered selling from the offers they received in the spring or summer time.
Don’t wait too long to buy your dream home
When you find the home you’ve been looking for, then it’s good to put down an offer. This can be important in periods of high demand, such as summer, which is when you may also find the right types of houses you’re looking for.
There may also be periods of pent up demand from lower activity over the past few years in certain areas. You can also check the housing supply in certain regions to check the overall activity for your mortgage range.
It’s also important to get the right mortgage rate, term, and plan for your home as well. This is to cushion against rate fluctuations, mortgage renewal payment shocks, and rising variable mortgage interest rates.
Should I buy a house now or wait for next season?
There are several factors that go into understanding when to buy your next house. You can consult with the brokers at sHelto to help you get started. Using these parameters, you can refine your decision further and understand the factors that go into making the purchase.
Inventory of listings
Based on the time of the year, the inventory of listings will impact your purchasing decision. You can review the listings in your desired area to understand which homes have been in the market for how long. You can make an offer on some of the older listed homes to gauge market trends.
Housing price trends
It’s important to understand whether we are heading into a buyer’s market or a seller’s market, to check for pricing trends. You can see condo sales, apartment listings, housing fluctuations to get a good idea of where the market is heading.
Down payment readiness
Your down payment readiness will affect what kind of house you can buy during what periods. If you’re aiming to get a Condo in Ontario, then your down payment will be substantially higher. This can change when you can buy a home, as well as your interest rates for monthly mortgage payments.
Credit score
Your credit score will determine your mortgage rates, your monthly mortgage payments, insurance, etc. Your lender will be able to offer you a more favourable rate if your credit score is higher. It may be wiser to improve your score by improving your borrowing history and rectifying credit report mistakes.
The right broker
It is important to work with an experienced real estate agent who can understand the right purchase price, overall national average home price trends, and market value in certain regions. They can connect you with the right lenders who can provide the right interest rates.
Home buying programs
There are a range of home buying programs and incentives offered by the Canadian government to help you save up for a down payment. TFSA, RRSP, and The Home Buyer’s Program can help you get started, while empowering you to enter the home buying market.
