Information in this post was provided by TheRedPin, a full-service real estate brokerage that carries the largest database of condos and homes in the Greater Toronto Area – offering access to 60% more listings than on MLS.
It’s January, so you could be excused for being a little strapped for cash this month.
Between buying a gift for every family member, friend, and acquaintance you’ve ever met, and pushing your internal organs to the very brink of their limits, you’d be forgiven for not wanting to let your MasterCard see the light of day until March at the earliest.
But boy, oh boy, do we have the sale of the century for you.
According to market research, you may want to make a giant red ring around January 19 on your calendars if you’re searching for your dream home.
Based on buying data, statistics suggest that it’s possible to save $60,000 if you buy this month instead of waiting to snap up a home later in the peak spring season.
TheRedPin has crunched its numbers and reported that not only is January the cheapest month to buy property, but the 19th is the reigning day on which to deal on real estate purchases, thanks to a combination of cold weather and the sales cycle.
Rokham Fard, Co-Founder and CMO of TheRedPin.com, said, “The largest month to month price increase occurs between January and February, with average costs increasing $31,166* from the first to second month of the year. Is waiting a couple of weeks worth over $30,000?”
And while we’re not suggesting that you rush into any decisions, or buy a home you’re not ready for, the time could be right for many prospective homeowners as the housing game turns briefly into a buyer’s market.
Here are TheRedPin‘s reasons why you should buy on January 19.
January Sellers Need to Make a Deal
Spring is more lucrative, so sellers in January will probably be putting these homes on the market out of necessity. Take advantage of this by playing hardball and using your leverage in the negotiation process. Remember: Nice guys finish last.
New Year’s Resolution
The average cost of a home bought in January is $43,000 less than the average home price in a calendar year, and almost $60,749 less than the average cost of a home bought in May, the most expensive month. But by May, house prices will be a distant memory as you sit enjoying the summer from the comfort of your new pad. #smug
Save More Toonies on Tuesdays
Tuesdays are the best day of the week to make an offer on a property because most listings go off the market on this day, meaning a higher average of accepted offers on that day of the week. Move over, Cineplex Tuesdays. We have a new friend in town.
Bad Weather = Good Prices
It’s cold, and no one wants to make a big purchase – except you, smart millennial that you are. Plus the weather has been unseasonably mild thus far, so what are you waiting for? Get out there and snag that house.
Embrace the Slow Sales Cycle
Just because January is the time to strike doesn’t mean you need to feel rushed. It takes 38% longer to sell in January than during the peak spring season (29 days vs. 18 days), so chances are you won’t lose out by waiting. Put the kettle on and make that pros and cons list.
Act Now or Regret Later
Interest rates aren’t going to stagnate for much longer, and with rates in the US increasing, this could bring with it a subsequent hike in Canadian rates. So stop dragging your heels – January 19 is fast approaching.