It’s no secret that real estate markets are typically busiest in the spring and fall. But what happens during the dead of winter or the middle of summer?
Quite simply, the market hibernates in the winter and goes on vacation in the summer.
Having experienced a Canadian winter or two, we all know that we’d rather stay indoors and wait for the spring thaw than venture out to shop for homes. During the summer, it’s much the same. We want to make the most of the warm weather while it lasts. Summer is short, so our attention shifts to beaches, cottages, and backyard BBQs—not square footage, mortgages, and moving boxes.
For those of us whose livelihood revolves around real estate, however, the quieter months are anything but idle. We spend the winter and summer preparing for the busy spring and fall markets.
As I write this, it’s mid-July, and the market has slowed considerably. Sales are up compared to last year, and prices have seen a modest increase. Inventory remains relatively high, but it’s not the buyer’s paradise many people assume it is. Sellers aren’t giving their homes away, and many potential sellers are holding off until the fall market to list.
Most market observers—including myself—expect prices to strengthen this fall. More inventory is likely to be met with more buyers, creating increased competition. And as we’ve seen time and again, competition tends to put upward pressure on prices.
With that in mind, if you’re planning to purchase a home and your top priority is getting the best possible price, now may be the ideal time to act.
Historically, the middle of summer and the heart of winter have often presented excellent opportunities for buyers. Fewer people are actively shopping, which means less competition and, in many cases, more negotiating power. If you can postpone a vacation or spend a few weekends house hunting, you’ll likely find some excellent homes currently available without having to compete against multiple offers.
Of course, many buyers are also sellers, and that’s where the hesitation often comes in. It’s natural to wonder whether you’ll achieve the price you want for your current home. Selling high while buying low is everyone’s goal, but it’s rarely that simple.
The key is to look at the entire transaction rather than focusing on just one side of it. You may not achieve the absolute highest sale price during a slower market, but you may also purchase your next home for significantly less than you would in a more competitive environment. Sometimes accepting a little less on the sale can result in even greater savings on the purchase.
At Tate Homes, our goal is to help you maximize the value of your current home while negotiating the best possible price on your next one. We work hard, leverage every tool available to us, and provide honest advice based on current market conditions.
Our role isn’t to make decisions for you—it’s to give you the information, guidance, and confidence to make the right decision for yourself.
If you’re buying and selling this summer, ask yourself one simple question:
Can you accept a little short-term compromise in exchange for long-term financial gain?
If the answer is yes, we’d love to help. Contact Tate Homes today, and let’s get to work.