Figuring out the right time to sell your home can be tricky and the term ‘seller’s market’ is thrown around quite often. But if you choose to take advantage of this market state and sell your home, won’t you soon become the buyer yourself, negating any advantageous aspects of listing in a seller’s market? It’s a confusing cycle!
While location will always be the number one factor in real estate, it could be argued that timing is a close second. Traditionally, selling during December and January will bring fewer interested parties to your home. That said, I’ve seen homes sell during December in a matter of days, partially because inventory is so low.
As a house-hunter in May or June, you are joining the company of many others who choose to buy a home during the busiest months in the real estate industry. This could quickly lead to disappointment or bidding wars. One thing you never want to do as a buyer is forgo necessary conditions (i.e. a home inspection or financing) in order to win a bidding war.
Timing is also a factor when it comes to the order of business. Sell first and you may face a tight deadline to find another house or be forced to find temporary housing, ultimately making two moves. Buy before your home is sold and you may be saddled with two mortgage payments, plus taxes and insurance payments, for at least a couple of months. That’s a significant amount of money tied up that could impact your ability to finance your next home. Ideally, it’s safer (and less stressful!) to sell your home before purchasing another.
The bottom line? There really isn’t a perfect time to sell or buy a home. If moving is by choice and not necessary (i.e. job relocation) pay attention to local real estate boards and watch for activity in your neighbourhoods. You can also seek the advice of a real estate agent, who can tell you the worth of your home and give some insight into how quickly comparable homes are moving in your neighbourhood.