As we all know the winter months are slow months for real estate sales in Ontario. Generally we see a downward trend in sales volume at the beginning of the winter season and it starts its climb back up in January but remains low until May. Many people, especially those in a buying position, can become frustrated at the end of the summer season and wait out the winter. However, whether you are buying or selling a home in the winter, the season does offer some unique opportunities.
Just like any industry the housing market is heavily influenced by supply and demand. When inventory is high (supply) and buyer volume is low (demand) you end up with a buyers market and vice versa. When you apply S & D to the winter months you have low inventory (supply) and low demand.
Buyers Benefits
Buyers who are willing to brave the cold can find some opportunity in purchasing during the winter months. A few common circumstances that can work to a buyers advantage during these times are as follows. Some sellers may be in a position where they have to sell, this increases the chance of accepting a less favourable offer. Additionally, buyers are less likely to be competing with others in dreaded multiple offer situations. Not only does a buyer have a better chance of locking in a good deal but their real estate agents have less volume during this time which allows them to dedicate more time to your deal.
Seller Benefits
If you are looking to sell your property in the winter, it to can also work in your favour. If you were a buyer in 2017 you likely saw intense competition in attempting to purchase a property. Properties were sold as soon as they hit the market, multiple offer situations were staged, buyers were forced to remove conditions and offer top dollar if they wanted any chance of beating out the crowds. If you are selling, and are in no rush to sell the opportunity is this. With less inventory, a buyer has less options. If they need to find a property, waiting for listings to become available might not be a viable option. This means that a seller can stick to their price, negotiate conditions and make a timely decision without being overly concerned that the buyer will move on to another property if the deal is not catered towards them.
As the famous Warren Buffet once said, “Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”
If you feel like stepping outside of the herd and braving the elements give us a call!
– Nick Kardos, Broker