Be Bold, Start Cold!

There are two seasons in Ontario – winter, and construction – and the ebb and flow of the real estate market also follow this pattern. The spring thaw and setting our clocks forward an hour is accompanied by an increase of for-sale signs donned on front lawns. Despite the fact that Canada prides itself on being the land of ice and snow replete with winter activities and sports, prospective buyers and sellers glide into hibernation this time of year.   The commonplace mentality is that winter is far from the right time to buy and sell a home. On the one hand, sellers typically avoid selling their home because there are fewer buyers and less of a likelihood that their home is shown in the best light, perceiving that this minimizes their chances of being able to sell for the right price. On the other hand, buyers face reduced options and the hassle of touring and potentially moving homes during tougher weather conditions. While there is a rationale for this approach to real estate in the winter, buying and selling real estate during this time may not be the worst option. In fact, it may present potential advantages to those who decide to combat the frost. Less Competition   Just as the temperature slides below freezing, the number of prospective buyers exploring homes during the winter takes a dip. From 2016 through to 2018, the warmer months of May, June, July, and August account for anywhere between 33 and 40 per cent of existing home sales; whereas, the colder months amount to less than half of those totals.   Naturally for house hunters, greater inventory means there is a better chance of finding the home that meets all of your criteria, but your purchasing power is diminished due to the fact that more buyers are looking at the same time as you. Frigid temperatures bring forth fewer options, meaning you may need to compromise on your property feature wish list, but there is a higher likelihood you will be able to successfully purchase a home and with less duress. Reduced competition from among buyers will help you steer clear of the dreaded multiple offer scenario forcing you to utilize more of your budget and it may also empower you to visit the home more than once prior to submitting an offer.   Sellers, the absence of snow and the presence of May flowers carry the task of having your landscape carefully manicured because, of course, first impressions count. December through February; however, means less of this worry since you do not have to compete with other properties that have well-kempt exteriors. Fewer properties for sale will enable you to have a better chance of exhibiting your home front-and-centre for hopeful buyers. Again, taking into account three years ending in 2018, May through August records forty per cent of new listings that become available for sale through the Multiple Listings Service (MLS) for the entire year.  Conversely, the coldest months of the year – January, February, and December – see less than fifteen per cent of aggregate listings hit the market for sale. Fewer listings mean less inventory; thus, less competition. It is important to note that if you do not have a desirable product in a highly sought-after neighbourhood, there will be less of a probability that you will find buyers in a bidding contest for your home.   However, whether you are buying or selling real estate during the winter, less overall competition means your real estate broker or sales representative will be able to dedicate more of their time to you and your goals.   Winter Fortitude   The stress put on homes during Canadian winters empowers house hunters with the optimal opportunity to evaluate the property under the most unfavourable conditions of the year. Make a note about the efficiency of the furnace and ventilation system. Take a look at the tag on the furnace and see when it was last inspected. Depending on interior household activities and exterior temperatures, it is recommended that temperatures within the home range between 18°C to 24°C with humidity levels between 25 per cent to 40 per cent. On the one hand, high levels of humidity will cause condensation, damage to interior finishes, and musty smells. For instance, humidity can also build up on windows, soak the window frame, and lead to mold and wood rot. Do you feel a draft from doorways or windows? Keep an eye out for moisture between the panes of glass. If your windows are not energy efficient, they will lose heat to the exterior environment and moisture will on the window panes. Over time, this can lead to problems that are expensive to remedy. On the other hand, low levels of humidity may lead to difficulty breathing, sore throat, and dry skin. This is a time to be extra critical. Do you spot ice dams on the roof? Plus, you will get a better sense of the amount of work required when the home is impacted by heavy snowfall. Are the driveway and walkway going to inconvenient to shovel? The Motivated Negotiator   Due to seasonally low inventory, sellers will encounter buyers at this time that are simply not window shopping as they are in spring and summer. Buyers that sport their winter attire in order to view homes during sub-zero temperatures are typically determined and they will be more inclined to submit an offer. Lowered levels of inventory will make your home more appealing and may simplify the decision process for the buyer. Even though some sellers may not be in a rush to sell their home and will take advantage a lower supply of homes, other homeowners that list their home during the winter may need to sell their home; hence, are more motivated. For instance, a seller may have purchased a home that will require them to move in the spring or sooner. Your real estate broker or sales representative should investigate the purpose behind the homeowner’s decision to list their home at this time.   The Haul   Moving companies are booked solid during the summer months. Approximately forty per cent of moves occur between the beginning of June and the middle of September. Despite the fact that snow, ice, and frigid temperatures make it more burdensome to move, the logistics involved are less onerous since you are not competing with other households moving.   New Beginnings   Whether you are buying in December and moving in the new year or making your purchase at the beginning of the new year, the arrival of January is for fresh starts and a new beginning. In addition to taking the time to join a gym for a healthier lifestyle, make that move in the real estate market whether it is buying or selling and begin anew in your new home. Investors, you may want to make that purchase ahead of spring as prospective tenants will begin searching for their new residence when the new year arrives in order to make the move during spring.