Anyone who has followed the Toronto real estate market for any length of time may have picked up on a few patterns. Though conditions are often unpredictable, some times are noticeably busier than others in terms of the number of transactions.

What does any of this mean if you are wondering if now is a good time to sell a house? There are a few schools of thought when it comes to getting the best possible value from your transaction. In this post, we’ll explore the topic in more detail.

An accurate and compelling price point is the foundation of every other step in the home selling process. Find out how much your property is worth by booking a complimentary home evaluation.

Four Seasons of Toronto Real Estate

When pondering the best month to sell a house (and by extension, the worst month to sell a house), the first thing you might do is simply look outside the window. It turns out, the weather could be one of the best indicators of what might happen over the next few weeks.

In Toronto, there are two busy seasons:

1. In the spring, buyers come out of hibernation, all excited about the prospect of finding a new forever home. This is by far the busiest season, and the window of opportunity is likely longer than you think. A typical spring market lasts from mid-January to the end of May.
2. Real estate agents often refer to autumn as a “mini-spring.” This market runs from September to November. It is also busy, just not quite as frantic as the spring. If you’re judging by the season, this is the second best time to sell a house.

Toronto real estate is also known for its slower seasons:

1. In December, the opposite usually happens. People have the holidays on their minds, and house hunting is likely their last priority. Almost no one buys during this time unless it is out of necessity.
2. The summer months also tend to be slow because potential buyers are too busy enjoying the all-too-short period of warm weather.

Before listing your house, it’s a good idea to have the big picture on how real estate works in Toronto. The informative posts below can bring you up to speed:

• What Does Closing Date Mean in Real Estate?
• Is Title Insurance Mandatory in Ontario?
• How to Check Market Value of a House in Toronto

The Impact of External Factors on Real Estate

It’s no secret that Toronto real estate is predominantly driven by seasonality. However, there are other factors to consider. In recent years, inflation and interest rates have dominated news headlines, especially as they pertain to housing sales. Though the situation is nuanced, it often boils down to two principles:

1. When interest rates are high, housing sales slow down. It’s harder for a buyer to qualify for financing, and often, they’ll move to the sidelines to try to wait it out. Rising interest rates are often directly correlated to lower real estate prices due to decreased demand.
2. Low interest rates generally boost the market, leading to a flurry of activity and sales. Buyers get excited about lower costs of borrowing, which often means they can afford more house for their money. Demand picks up, and as a result, prices often follow.

Inflation and the state of the economy can also affect the real estate market. When the outlook is positive, potential buyers feel confident to move forward. If something happens to shake things up, then we see more people step back and put their buying decisions on hold.

The complexities of real estate and the economy as a whole can make it difficult to plan the perfect time to sell your home. No one, not even the most well-informed expert, can determine when housing prices will reach their peak or when they will bottom out.

There is good news, however. While you want to be aware of what’s happening so you can formulate an effective plan, you don’t necessarily have to wait for a “better time” to sell your home. The truth is that you have some advantages in any situation.

Looking for more advice on how you can maximize your home sale in any market? Here’s How to Sell Your House: The Complete Guide.

Types of Real Estate Markets in Toronto

Analyzing all of the data helps you understand what type of market you are about to enter.

1. Seller’s markets are associated with high demand for housing that exceeds the supply. This imbalance means there are too many buyers and not enough inventory to meet the need, which can put upward pressure on housing prices. The seller is at an advantage, and multiple offers can happen. A buyer may have to offer above the asking price and waive conditions to compete. This bodes well for you if the timing works out.
2. Buyer’s markets mean the opposite is true. There are many houses available, but not enough buyers who are seriously interested. A seller in these conditions can be at a disadvantage. To compete, they may need to offer concessions, like lowering the price, making repairs, or covering some of the closing costs. In addition, houses can take longer to sell as buyers are more selective. A serious buyer will consider their options carefully and will often add a condition of home inspection.

Do you plan to buy a new home once your transaction is complete? Start by browsing some of our featured listings.

The Best Time to Sell a House Is Always Personal

Very few people base their decision to sell based exclusively on the season or what’s happening in the market. If you need to sell because your dream employer just offered you the career opportunity of a lifetime, you’re not going to hold off to wait for the market to change.

Every home seller has a reason to want to move, but “ interest rates are low” or “it’s nice outside” do not generally show up on the list of explanations. It’s almost always personal!

Fortunately, you don’t have to put any of your decisions on hold, either due to the market or the climate. Whenever you decide to move, there’s a strong chance conditions will favour you on at least one side of the transaction. For example:

• If you’re selling in a seller’s market, you’ll likely find a buyer quickly, and possibly even get offers above your asking price.
• Selling in a slow market can take longer and requires more sophisticated marketing, but it is still very doable with the right strategy. Desirable houses that are well priced and well marketed tend to sell no matter what is happening.

Whatever the situation, the trick is always in working with a local real estate team that understands your particular neighbourhood. With expert guidance, you’re in a position to negotiate the best outcome on your terms.

Are you planning to sell your home this year? Our West Toronto Realtors® are happy to guide you through a straightforward and successful transaction. Contact us today at 416-788-1823 or email kim@kimkehoe.com to take the first step.