“I’m waiting for Springtime to sell my house” I hear this a lot around this time of year. It is true in Canada that the boom for Real Estate is in the springtime, when the snow is gone and people start to shop for new houses.
This year similar to years past, there has been a rate change two months ago. When this was announced many buyers already had a 90 day guarantee for their lower rate. What does this mean? It means the springtime boom has been moved up by the banks. Why pay more later when you have a rate guarantee now. Anybody that has been looking for a house now might find that there is a slight shortage of inventory.
Naturally this has caused some bidding wars. This is not necessarily true in all areas of the market. In some areas there are plenty of houses to make a choice and not get sucked into the black hole of bidding.
Many buyers are also wondering why some homeowners who are going to sell their house this year are not pushing their selling date up. Well there are many factors that go into selling a house. Here are the reasons why people will not sell now:
Buy another house: If you sell your house you will have to buy another one, some people might not like what is out there.
School: If you have kids you might not want to or be able to change their school during the year.
Weather: Some people do not like the weather nor want to move their belongings in the cold
Renovations: Buyers anticipate renovations, most buyers do not want to renovate in the cold.
Even though selling your house right now is very lucrative and the competition is low there will be more buyers in the spring, even though the interest rates are going to be higher. Similar to every time there is a boom, there will be some homeowners that think that the boom is still on after it has left and will be asking for a ridiculous amount of money for their overpriced house. Be weary because your house could stay on the market for a very long time and stump your chances of receiving the proper value. Don’t wait too long if you are thinking of selling your house.