Is It a Good Time to Buy a House? | The Lisa Hartsink Team

Buying a home is likely one of the most significant decisions you will ever make. For many people, it’s their single biggest purchase, period. It’s how many people grow their wealth and safeguard their future.

Even more than that, your home is your respite. It’s where your kids will grow up, where you’ll make cherished memories. It’s the place where you can relax and feel safe.

With all things considered, when buying a home, it’s important to ensure you’re making the best possible decisions for you, your family, and your future. There are countless factors that go into your decision to buy. In this post, we’re talking about timing.

Is it a good time to buy a house in Ontario? Keep reading to find out.

Factor 1: The Real Estate Market

The real estate market is in constant flux. Yes, there are discernible trends and patterns, but it’s hardly a static thing. Additionally, the real estate market is influenced by its own set of factors, such as supply and demand, economic stability (or instability), world events, interest rates, cultural shifts, local news and trends, and more.

One of the most common questions we get asked is whether or not it’s a good time to buy a home, and in most cases, people are referring to the market.

For example, if housing demand is high, prices will likely go up, and buyers will face more competition during the house hunt. A heated seller’s market favours (you guessed it,) the sellers. Meanwhile, a buyer’s market favours buyers with reduced demand, lower prices, less competition, and in general, more negotiating power on the buyer’s side.

You can also have a balanced market when neither buyers nor sellers are favoured one way or another.

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Factor 2: The Season

Traditionally, the spring and fall markets have been the busiest in real estate. Most sellers wait for these busy periods to list their homes. Historically, it’s also the time of year when more buyers are actively looking for homes.

Buying a home in the spring or fall might give you more selection as new listings flood the market. However, at the same time, with more active buyers looking, you might face more competition, which could mean dealing with bidding wars or needing to compromise on certain conditions to win an offer.

Buying a home in one of the slower seasons (summer and winter) could afford you more negotiating power, as these sellers are usually a little bit more motivated to sell quickly and lower competition could give buyers an edge.

With that said, many real estate experts agree that seasonality in real estate might be on the way out. As the pandemic taught us, any time of the year can be busy for real estate when the conditions are right.

Learn more about timing your home purchase with these posts next:

Factor 3: Interest Rates

The Bank of Canada overnight interest rate is closely tied to the overall economic health of the country, not just real estate transactions. When inflation is on the rise, the BOC might decide to increase interest rates to cool the economy. Conversely, if the economy is growing slower than expected, central banks might decide to lower interest rates to spur more borrowing and spending.

Interest rates also impact the real estate market. Most mortgage lenders use the BOC’s policy rate as the jumping-off point for mortgage rates. Anyone with a variable rate mortgage might see their mortgage payments fluctuate due to interest rate changes, while anyone with a fixed rate mortgage will be subject to the interest rate available at the time of financing or refinancing.

When interest rates are high, it means mortgage payments will be higher. Affordability becomes an issue, and some buyers choose to wait for interest rates to go down again before making a move.

Planning your next home purchase? Preparation and knowledge are key! Download our Homebuyer’s Handbook right here.

So, When is the Best Time to Buy a House?

Contrary to popular belief. There is no “best” time to buy a house. Yes, the factors listed above could influence your decision, but if you’re waiting for a spring buyer’s market with low interest rates, you might find yourself waiting for a long time.

In reality, the best time of year to buy a house is whenever it is most convenient for you. And the best overall time to buy a home in Ontario is whenever you are ready.

Do you have more questions about buying your next home? Here are a few more articles you might find interesting:

Factors That Actually Matter When Buying a Home

Yes, market conditions and timing factors should be considered when buying a house. But at the end of the day, the most important factors are the ones that you can decide for yourself. Life doesn’t stop for interest rates, and you might not be able to wait for the stars to align for the perfect conditions to buy a home.

Here are a few factors that can influence your decision:

Your family is growing, and you need a bigger house
Your kids have moved out, and you need a smaller space
You got a new job that requires you to relocate
You want to ensure your children are within a favourable school catchment area
Your current home doesn’t suit your needs anymore

How to Get Started

When you’re ready to buy a home, the first step is to get pre-approved for a mortgage and talk to a real estate professional. Here at The Lisa Hartsink Team, we combine compassion-led service with detail-oriented experiences for successful home sales and purchases in any type of market or season.

We’ve helped countless homeowners in Georgetown and Halton Hills find the right home at the right time. Whenever you are ready, we’re here to help!