TIMING YOUR BIG BUY
Let's be honest: it is next to impossible to time your next home buy. Buyers don't have the luxury of waiting around for the “right time” to buy. If you try, there’s a good chance you’ll miss out. But when you're sure that the perfect home has come along, you have done all your research, and your finances are in order, you’ll want to jump on it!
The real estate market is a cyclical market largely dependent on the seasons. In London, even the slightest feeling that spring is in the air has the power to jump-start the market…and a huge snowfall, on the other hand, can bring the market to the screeching halt!
The Spring Market usually starts around early February to early March. Naturally, it’s a time for renewal and re-growth. Not only is the weather turning warmer, the market is too! There is a lot of inventory, which means that as a buyer, you have a better chance of finding your Dream Home…you may just have to pay a little bit more for it, since competition for these spring listings is high. This peak usually lasts until late June to early July, and then swings back up again for the second annual peak at the beginning of September for the Fall Market.
As a buyer, if you’re trying to pinpoint the best months to make an offer on the house of your dreams, you’d be looking at July, August, December, and early January. Why? The reason lies with prices decreasing during these months due to lesser demand. Of course, there are pattern variations every year depending on the seasons, but traditionally, these months are ideal to go on vacation or for families to have some quality time together...but they’re also ideal for buyers to save a bit of cash! Sure – you can wait until inventory peaks again to have a few more to choose from, but you may end up paying as much as 10% or more on your home purchase.
The bottom line is this: at any point in the year you find “The One,” you’re going to want to make a move. Yes, it might save you some money to buy in the real estate off-season, but you may also miss out on the house too. The best way to be prepared so you can act quickly when you do find “The One” is to first get pre-approved for a mortgage so you know how much you’ll be working with, research amenities in the area that are important to you, and look closely into the neighbourhoods that appeal to you the most. Check out my articles How You Know You’ve Found “The One” and The Real Estate Purchase Blueprint to start! Happy house hunting!