It can be difficult to time when to sell your house, as the market isn’t always going to align with your interests and needs. Instead of looking solely to the market, ask yourself a few questions to decide whether or not now is the time to sell.
Questions You Should Ask Yourself:
- Are you financially ready to sell? If you’re planning to buy a new home, then are you able to afford a new mortgage?
- Are you emotionally ready to sell? Is now the best time to make a change?
- Do you know where you want to move? Is there enough inventory in that location?
If you’re ready both financially and emotionally, then it’s time to consider the other factors that would help determine if now is a good time to sell.
Market Conditions
Prices have steadied since the pandemic, but they are still high in just about all Canadian real estate markets. You can take advantage of the high selling prices and use the proceeds as you need.
It’s recommended you meet with your mortgage advisor to see what you would walk away with from a sale after paying out all the selling costs.
Lower Interest Rates
The Bank of Canada has been cutting interest rates and steadily heading towards its target of a two percent inflation rate. For sellers, this could mean having more buyers looking to take advantage of the lower mortgage rates. For buyers, it opens up more options as to what you can afford.
Further interest rate cuts are expected this year and into 2025, which could spur the market even more.
Research the Market
Take a look at some comparable homes that have sold recently in your area. Would you be happy with selling for a similar price?
You can always reach out to a real estate agent for a valuation and to look over some comparables from your neighbourhood. Ideally, you would list in a seller’s market—that is, when the demand for homes is greater than the available inventory.
Lower Inventory
Speaking of a seller’s market, there are fewer homes on the market than what is expected for the long-term average. The Canadian Real Estate Association (CREA) reports that there were 183,450 homes for sale at the end of July, which is up 23 per cent from one year ago but still ten percent below historical averages for this time of year (roughly 200,000).
There may be more potential buyers due to interest rate cuts, and with lower inventory a well-priced home won’t stay on the market for long.
Is Your Home Ready to Sell?
You may be ready to sell, but your home may not be. Your home will fetch a higher selling price if you’ve upgraded or modernized it, especially in areas like the kitchens and bathrooms.
While it’s not necessary that you spend time and money renovating in order to sell, you should do a deep clean and declutter at the very least. Take into consideration how much time you’ll need to get your house ready before hitting the market.
What Season is the Best Time to Sell?
Most agents agree that spring is the busiest season for real estate, as many want to be moved in and settled before summer begins. That’s not to say other seasons aren’t good times to sell—real estate is conducted all year!
If you can’t list in spring, don’t fret. Listing during other seasons could mean less competition, and may work better for you and your family’s personal timeline.
