You’ve finally saved up enough down payment for a home and you’re ready to take the next step. Then, a thought pops into your head: is now the right time for me to buy a home?
There’s a lot of factors to consider when you’re buying a home. Of course, there’s your financial capacity and readiness. This is an internal factor that you can control and prepare for. Then there’s also external factors involving the housing market – mortgage rates, real estate listings, competition to name a few, which can be very sensitive to changes.
How do the seasons affect the real estate market?
If you’re a first-time home buyer who wishes to understand the behaviour of the housing market, it’s important to remember how the season can affect supply and demand… with the holidays and school year influencing the real estate market the most.
Families like to avoid uprooting themselves in the middle of the school year, considering their children. You’re likely to encounter fewer sellers along with fellow home buyers during the holiday season. In fact, buyers in the Greater Toronto Area who sold their home in January get $43,000 less than the overall calendar average.
4 Things to Look Forward to When Buying a Home in the Summer
1. There’ll be plenty to choose from
Spring and summer are times when the real estate market is most active. If you’re particular with what you want in a home, this’ll be the season for you because there’s plenty to choose from.
Not all neighbourhoods are competitive, however. While there’ll be more buyers during the summer, the hot market depends on the location. You’ll be more likely to encounter more competition in downtown and high-end neighbourhoods.
2. More time to check and inspect houses
You probably have a day job to attend to and thus, you’ll have little time for home shopping or to visit open houses. Your schedule may not permit you to browse homes all day. Yet, house hunting during the summer gives you more daylight to do so.
It’s not that you can’t visit the available houses at night, but it’s easier to appreciate homes during the daylight. Moreover, should you require assistance from your real estate professional or mortgage broker, it may be easier to reach them during normal work hours.
3. There’s no school
Summer is the best time to buy a home and move into one, too! If you have kids, you’ll be more free to move into your new home as school is out. Best thing is, you’ll be able to bring your children with you as you visit and inspect houses. Your home buying journey can actually be an enjoyable experience for you and your family.
Take note, even if you don’t have kids, your closing date may be affected if you’re dealing with a seller who has kids.
4. Homes are in full bloom
You’ll be able to enjoy homes in full bloom and lush greens during the summer. You can visualize yourself lounging in the yard and tending to the garden during this time. This’ll be a relatively easier season to buy a home. Logistically, it’s also a lot easier to move around in the summer.
Viewing homes during the warmer months also serve as a great time to inspect such features as the deck, roof, drainage, air conditioning and basement among others.
When’s the best time?
Real estate can take many twists and turns. A big question for those involved in the market – especially first-time home buyers – are mortgage rates. What made the situation even more challenging was the global pandemic, especially since experts predict that Canada won’t be able to economically recover until 2022.
So when’s a good time to buy a home? Seasonality plays a huge role in the real estate market. One more timing consideration you should take note of is your readiness. The best time for you is when you become confident that your finances can handle the cost and responsibility of owning a home.
Once you’ve decided to start your home buying process, consult and work with a mortgage broker whom you can trust. Daisy Raouph is a mortgage broker and financial security advisor based just outside Toronto, who can help you buy that perfect home. Consult with Daisy today!