There is no truly best or worst time of year to sell a house, since transactions take place throughout the year. However, it is important to understand that the real estate market follows a cycle that tends to repeat from one year to the next. As a result, you are more likely to sell during certain months than others.
The Real Estate Cycle
Generally speaking, home sales tend to slow down in January, but activity usually picks up again as February begins. This is because many first-time buyers have leases ending in July and want to find a property well before then.
That is why they begin their search at this time of year, with the goal of buying during the spring, when real estate transactions are more frequent. Families planning a move also often try to buy in the spring so they can move into their new home during the summer, between school years.
When summer arrives, real estate transactions tend to decline, as buyers often prefer going on vacation rather than visiting homes. However, the market often gains some momentum again in the fall and through November. Buyers who are in less of a hurry to move take advantage of this period to explore the options available to them.
Consider Other Factors
The number of real estate transactions completed during a given period does not depend solely on the season. Other important factors also influence the real estate market, particularly the state of the economy. As a result, when the economy is weaker and unemployment is higher, there are fewer buyers, making it more difficult to sell than when the economy is performing well.
It is also important to consider that while the past 15 years have seen tremendous growth in real estate, that period of rapid expansion has now come to an end. Many people who were in a position to buy are already homeowners, while very high home prices and strict mortgage rules now limit the number of new buyers entering the market.
When the Market Is Difficult
If economic conditions are less than ideal when you put your home up for sale, that does not mean it will not sell. However, it may take longer than expected to complete the transaction, unless you live in a highly sought-after neighbourhood and your asking price is particularly attractive.
If you want to purchase a new property before selling your current home, one possible solution is private mortgage financing. Once your existing home is sold, you can pay off your debts and refinance your new property through a more traditional mortgage solution.
A private mortgage loan can also be an attractive solution if you feel you need to sell because you are experiencing financial difficulties and have received a 60-day notice. At Clic Hypothèque, we can help you explore alternative financing solutions tailored to your needs, whether through a private mortgage or another type of private loan, to help you improve your financial situation.
