HOMES + I N S I G H T
Buying or Selling in the Winter
PROS & CONS
The first thing we need to establish is, which are the winter months? According to the calendar, the first day of winter was December 21st and the first day of spring is March 20th.
Julie D. Martin Real Estate Broker
I have found that many people assume that the seasons in real estate match the seasons on the calendar, and that really isn’t the case. Let’s break this down a bit to make some sense of what we call “real estate markets” that we experience throughout the year.
The spring market is the busiest of all seasons in real estate because there are the most listings during that time of year, which translates into the most transactions. Contrary to what most people believe, summer is usually pretty slow in terms of sales, as this is the time that many people (buyers, sellers and realtors) are away enjoying the beautiful weather at their cottage or on vacation. In general, it’s just a much slower paced time of the year. Many people think that summer is busy in real estate, but they may be confusing the number of closings with the number of actual sales transactions. There are a lot of closings in the summer months, as most people with children want to be able to close when school is not in session, and the summer closings are usually for properties that were sold in the spring. The second busiest season in real estate is in the Fall, and the fall market gears up right around Labour Day. This market is the strongest when it is beautiful outside, so most years, the majority of the fall transactions have taken place by the end of October. Even though there are a lot of transactions taking place in the Fall, it is during a very short period of time. Once mid-November hits, the weather can sometimes dictate how the rest of the fall and the winter markets go. I just wanted to set this up, before discussing the winter market, so that you understand the different real estate markets throughout the year and how they flow from one season to the next. It also to de-bunks the idea that the real estate market coincides with the season in the calendar. In my experience, the real estate market usually runs about 4-6 weeks ahead of the calendar.
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The following annual events and factors tend to drive or affect the real estate markets: • Weather • Summer vacation season • Back to school • Beginning of University/College semester(s) • Elections • Holiday season (Christmas) • Interest rates • Any new banking or federal rules
In addition, one other major world even that has affected our market in the Waterloo region (just like every other part of the world) is COVID. People realized that if they can work from home, they can work from home anywhere, so many Buyers migrated to areas that are less expensive than where they were currently living. Our market has always been influenced by the GTA market, and COVID has only made that more intense. In general, the winter market runs from the end of November through the end of February. The big push at the end of the fall market is from buyers who want to get into their new home by Christmas. By the time the winter market starts, the Buyers who haven’t purchased something yet may resign to the fact that they may have to close in January or February. There tends to be a bit of competition for those who have been looking for a home throughout the fall and haven’t found one yet. People who are focussed on a timeline tend to get a little more desperate to outbid other Buyers at this time of the year. Homes that are vacant and can accommodate a short closing are often appealing for this type of buyer.
