Looking for a deal? Now’s the time!
December 2018 went down as one of the slowest months for sales in the Greater Toronto Area—and that presents buyers an opportunity.
“Last year’s mortgage rules and rising interest rates caused a pause in the market and caused sales to drop,” said Vicki Schmidt, broker of record and co-founder of JUSTO, a Toronto-based realty brokerage. “The number of listings dropped substantially throughout the GTA and properties coming on the market in January are doing so out of a sense of urgency. That gives buyers more leverage to get a better deal.”
Spring is the real estate market’s busiest time of year, which means, of course, it’s replete with hungry buyers. Getting in earlier, on the other hand, proffers buyers something that’s increasing difficult to find in a real estate market like Toronto’s: bargaining power.
“There’s far less competition from other buyers at this time of year with the financial hangover from the holiday season,” continued Schmidt. “Buyers are typically strapped for cash and they can’t make big purchases, so buyers who are prepared financially have an opportunity to get a good price.
Schmidt reckons that January 22 is the cut-off date for those deals—or, at least, it bargaining power diminishes after that date.
“Closer to the end of January, there’s more inventory so the second-last week of the month before we get into February is where there’s more competition,” she said. “Tuesday is also a very popular day of the week for buyers to purchase, so for all those reasons it’s an ideal day for buyers to get into the market.”
Mortgage brokers can also attest to the relative ease with which buyers can find homes during January. Daniel Johanis, a mortgage broker with Rock Capital Investments, says that a buyer with orderly finances should have a much easier time during frigid winter months than they will once the snow melts.
“There’s something to be said about people moving in minus-30 weather,” he said. “If you have your finances in order, it’s a good time, especially historically, because there’ less demand.”
Originally published on: https://www.mortgagebrokernews.ca/news/looking-for-a-deal-nows-the-time-253123.aspx