When Is The Perfect Time To Buy a House in Canada?
When buying your dream home, you need to consider many factors, including the reason and benefits of buying a new home now, interest rates, location, price, and more. You also need to ensure you’re financially ready to start paying monthly bills and a mortgage.
Buying a new house is a life-altering decision, as well as a huge financial transaction. You want to make sure you invest in the perfect home by getting the best possible deal.
For this, you need to learn when the best time to buy a house in Canada is. Not sure? Below, we’ve discussed which months are suitable for home investment:
What’s Happening in the Canadian Market in 2021?
Although the Covid-19 pandemic put everything across the country on hold, the real estate market experienced record-breaking rates. Specifically across the Greater Toronto Area, Vaughan, Newmarket, Bradford, East Gwillimbury, Mississauga, Ajax, Oshawa, Pickering, London Ontario, Hamilton, Elora, Kitchener, Guelph, Waterloo, Montreal, and Greater Vancouver saw a massive surge in home sales.
Many people found the coronavirus the perfect opportunity to buy their first home . Some people even upgraded to bigger homes outside the city. In the previous year, the average Canadian house price climbed 17% y-o-y. This year, realtors believe the sellers’ market will rise from 4% to 6%. Let’s find out more about the real estate market in different areas of Canada:
Toronto
Properties in Toronto’s housing market sold for as low as 1%, reaching an average of $1,089,536.
Hamilton
Hamilton’s housing market reveals that its real estate rates dropped down to 2%. However, the average pricing climbed up 27% year-over-year.
Ottawa
Ottawa’s average housing prices dropped down to 2.6% alongside a 24% y-o-y.
Vancouver
Vancouver, on the other hand , experienced a spike in average houses. Housing prices went up by an incredible 4.6%.
Edmonton
Edmonton also experienced a rise in prices, reaching up to 3.2%.
Winnipeg
Winnipeg saw an average price rise up to 4%.
Calgary
Calgary experienced a decrease in prices, and housing prices went as low as 2.3%.
When Should You Buy a House in Canada?
Knowing the best time for home investment in Canada can be challenging and tricky. December and January are considered perfect months since most homebuyers don’t want to brave the cold.
Spring, on the flip side, tends to be the busiest time of the year. During these months, an increasing number of properties become available, and the market becomes super competitive.
To help you better understand the Canadian housing market, we’ve made an in-depth guide to how real estate responds to different seasons:
Spring Season- Getting Access to the Best Property Options
Spring season comes with new listings flooding the market alongside a colossal wave of potential buyers. It means that the spring housing market is very enticing and competitive, especially for novice homebuyers.
There are two primary reasons why springtime is the most popular season in the market. These are as follows:
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It’s the ideal time for parents to put their house on the market before their children’s classes begin
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Winter is over, and it’s the perfect time for real estate agents to showcase all their properties
The boom of new listings entering the market is excellent news for most first-time buyers and new families. A perk of house hunting during this season is that you’ll have an array of choices. However, you’ll likely find it impossible to purchase your dream home.
While spring provides you with the best listing, competition is almost always high from March to July. Plus, top properties will have multiple offers, meaning buyers won’t be interested in making a deal with you.
Winter Season- Low Competition and Amazing Deals
If you’re seeking better prices and minimal competition when shopping, winter is the perfect season. Winter is often referred to as the ‘off-season’ in the real estate world.
During the holiday season, buyers have a clear benefit because sellers who wait until winter to put their property on the market are eager and time-sensitive. It means sellers will want to seal the deal in a short period. Otherwise, they would’ve waited for the lucrative spring season.
It creates the ideal scenario for buyers to negotiate a fantastic property’s listing price. Homebuyers can acquire an excellent property at a lower price with a pre-approved mortgage between November and February.
Fall Season- The Best Time to Invest
Multiple experts believe that the best time to purchase a property is during the fall, especially August. Fall is the perfect time for investing in a house because this season provides you with an expansive inventory plus lower prices than springtime.
Keep in mind that just because you’re hunting through less popular listings, it does not mean they are poor investments. In most cases, these properties are excellent real estate investments that transform into your next home.
Summer Season- The Perfect Time to Move
Summer is the slowest month when it comes to housing market activity. It is because buyers and sellers are often enjoying the warm weather and going on excursions.
Don’t forget that the school cycle also plays a critical role in determining the activity and prices of the real estate market. Most families don’t want to disrupt their routine in the middle of the school year, especially since switching school requires children to leave friends and familiar teachers.
But a calm and less competitive market also means the summer season is a great time to move and find a suitable property at a lower price.
What Things Should You Consider Before Buying a House in Canada?
Buying a home is a significant and life-changing decision of your life. While this can be scary, the fact is that buying a home can be exhilarating as well.
That being said, you must keep certain things in your mind before purchasing a home:
Mortgage Rates
The main factor accelerating house sales in Canada is its historic-low interest rates. 2020 has been a scary and uncertain time for all, significantly since employment rates have dropped dramatically.
Low-interest rates have become the new normal to boost the economy and make it easy to borrow money.
There are numerous reasons that people want to leverage these mortgage rates, including:
- Banks can offer loans to an increasing number of borrowers
- Buyers can purchase better properties
- People refinancing their mortgage will notice a substantial difference
- It can make it easier for people to recover their debts
- It can ensure significant savings for mortgage payments
However, if your property has a fixed-rate mortgage, the new rate change won’t affect you. Mortgage payments and interest rates only change for an adjustable-rate mortgage.
Become Familiar with Local Real Estate Trends
If you want to purchase a property, it’s always a good idea to be familiar with local housing trends. Consider learning from a professional real estate agent since they have in-depth information about the market.
Real estate agents can search for a great property in neighborhoods that match your budget and needs. They will also provide exhaustive details, information, and facts about the market, a specific area, and expected prices.
Having Stability
When purchasing a new real estate property, you must evaluate your finances. You need to make sure you have a stable job to manage your finances alongside a huge purchase properly.
Once you settle down in a city, you may invest in beneficial properties that evolve into significant assets after a few years. The key to purchasing incredible real estate is knowing what time you should start looking. The simple answer to this is; whenever you feel like you’re ready to make a purchase.
Once you’re ready, start tracking the real estate market and follow the properties that catch your attention. Then you can buy or wait until the right season comes up and negotiate the property’s price.
Buying when Demand is Low
Consider purchasing a real estate property in a buyer’s market. During this time, buyers can obtain excellent properties at lower prices.
On the flip side, a seller’s market involves low availability and high prices. It means sellers can choose from a wide range of offers. In most cases, multiple offers lead to a bidding war. Ensure to hire an experienced real estate agent to score a great deal on your dream house.
Hunt for the Right Mortgage
In today’s digital world, shopping around for a mortgage is easier. Keep in mind that finding the ideal mortgage that meets your unique needs can be a daunting task, especially if you do it independently.
For this reason, most buyers connect with a mortgage broker who helps you find the correct mortgage term plus a lender. From your mortgage broker , you will get a list of lenders who offer competitive yet affordable rates.
The Bottom Line
Research reveals that the best day to buy a real estate property is December 26 since almost no one is in the market after Christmas night. Sellers who are eager to sell their property offer discounts as low as 1.3%.
If pricing is your priority, avoid purchasing a home during spring and early summer; instead, seek deals during fall and winter.
When looking for houses, ensure you arm yourself with the proper information, shop for a reasonable mortgage rate, and learn various market trends.
