Buy a Home in August, Thank Me Later

By July and August, many homes that would have attracted multiple offers weeks prior are sitting on the market for two to three times as long. Why?

For those who are shopping for a home in the Toronto core you may be wondering where this market slowdown is that the media keeps writing about: we’ve still been seeing intense competition, multiple offers, and homes selling within days of being listed. But do not fret - relief is in sight for those who are willing to buy when others step away.

Every year we see a similar trend at this time - sales and listings pick up in the spring, and by July and August, many homes that would have attracted multiple offers weeks prior are sitting on the market for two to three times as long.

Why?

A lot of active buyers hit pause and focus on family and summer activities after schools get out at the end of June. I myself have had quite a few active clients say to me “Nicole, we don’t want to spend our few warm-weather weeks looking at houses”. And although I would never advocate forgoing family time, I believe there are some deals to be had that won’t be available come September.

I recently viewed a home in the west end - detached, renovated, parking, walking distance to the subway, on a quiet street in a top performing school district. Crickets. The seller has relisted twice - and the property is now being offered at a price about $30,000 less than market value.

Another home in the Toronto Core in a good school district, priced under value, updated, in a walkable/transit accessible neighbourhood received no offers at its scheduled offer presentation last night.  Depending on the seller’s situation (i.e., how motivated they are) the buyer for this property may potentially be able to negotiate a price with the seller to get a great deal. This is not an opportunity many buyers had even just a few weeks ago and is not one that typically lasts into the fall market.

With the GTA market picking up steam due to fewer listings and higher demand, now may be a great time to consider purchasing a property with decreased competition allowing you to get a home for a lower price.

Nicole Harrington is a Sales Representative with Realosophy in Toronto. She specializes in using data and analytics to help her clients make smarter real estate decisions, concentrating on Toronto and the GTA, and hosts her own website: SheSellsToronto.com.

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