WHAT ARE THE CYCLES OF REAL ESTATE IN HAMILTON AND SURROUNDING AREAS?
Residential real estate is one of the best investments you can make, while providing you and your family with shelter and a place to accumulate fond memories. But there are cycles in the market that may affect your decision regarding when to sell. These cycles can create a shortage of homes (which will usually push up prices) or a surplus of homes (which can result in a slowdown of rising prices or even price reductions).
What drives these cycles? The overall economy is most obvious answer. In periods of economic growth when employment is strong and people have confidence about their futures, demand for housing is high.
When there is a downturn in the economy however, unemployment increases and more homes are up for sale - at the same time potential buyers maybe waiting for things to improve.
These economic fluctuations can be national in scope or affect only certain pockets of the country. For example, local events can drive a real estate market too. The closing of a large factory can have a tremendous impact on the economy and housing prices. Changing interest rates also influence real estate market cycles. When interest rates rise, fewer people may qualify for any given mortgage amount and demand drops - making it tougher to sell your home or obtain the price you want.
Does all this mean you have to be an economist to determine when to sell? Not at all. But staying aware of the things that influence the cycles in real estate will help you decide when to place your home on the market and how to price it realistically.
The "Seasonality" of home sales in Ontario: Seasons and the weather can affect buyer demand and in turn, how long it will take to sell your home or the price you can obtain. Fewer buyers may be willing to trod through snow drifts to look at homes for sale during the winter months but you will also be competing with fewer houses on the market. These buyers are serious and look with a deposit cheque in hand.
Conversely, Spring tends to be an active time for real estate sales. Homes and gardens start looking good again and buyers come out of hibernation. Parents with school aged children particularly like to buy in spring. They can move into their new home during the summer and settle in before the next school year begins. Homes are sold throughout the year, so think of the season as only one factor in determining when you will put your home on the market.
Buy first or Sell first? When you meet with one of our team members, we will discuss with you options that are most comfortable for you. There are several ways to approach either method with flexibility tailored to your personal needs.
