Best Time to buy a Home in Toronto
Saturday Apr 28th, 2018Share
Timing can prove to be everything. Opting for the appropriate time to buy or sell a home is the key and can save money to a great extent. The acute below zero weather is definitely not considered the chief season to buy homes in Toronto, Canada but for the ones who want to find a great property in super nominal price, winter season is the most suitable time to buy.
Data from TREB represented that May had the highest number of sales in comparison to any other month of the year and thus the prices were higher too. It is seen that the general orientation of property prices in GTA have been rising thoroughly on yearly basis, in this way the usual seasonal housing market passes through many ups and downs from one month to other month.
After tracking the seven years of MLS data accurately considering 650,000 home transactions, TheRedPin constituted one month in specific, stands out on the budgetary front. January being the coldest month in Toronto, reflects the lowest home selling prices than any other month of the year. As per the analysis of data, In January, the person willing to buy a home were less with an average of $60,000 compared to the calendar-year average, since 2010.
The home-buyers who bought the homes in January, saved an average of $70,000 than that to those who bought in May (the best time to buy home in Toronto). Thus the “January advantage” remains to this month only.
While putting the prices apart and taking the properties into account; homes spent more days on market in January, considering around 24% longer to sell compared to year-round figures and 38% more time to close the deal when compared to spring. All of these factors assemble in benefit of buyers and also indicates that the avid market may face a little bit of a slowdown at the year starting.
Regardless of knowing that January is considered off-season, home sellers sell their homes intentionally. It may be because of any unexpected call like moving to a new job, family issue or an.
While compiling the 2016 figures separately, it was discovered that January was the only month when the ‘average sales price to list price ratio’ was less than 100 which was 99.*
What does that mean?
Home buyers paid an average of 1% below list price to secure a home in January. On the other hand, every other month in 2016 which was the hottest year according to records, found home-buyers spend an average of at least 1 to 4% over asking. Whether 1% may be suggestive of small, but can increase up to over $7,000.
Nonetheless, things are not all negative for sellers. In January, it is rare to find a good number of new listings which means fewer home sellers are bringing their homes on the market and thus, there exists less competition as well as less comparables for home buyers.
One thing is for sure, in January, buyers will be getting less homes’ options to select from and they should know that, whatever the property prices are, they will have to pay considerable down-payment nevertheless.