Benefits of Buying a Home in the Winter
Spring is often cited as the best time to buy a house in Canada, but is this really the case? While there is ongoing debate about the best month to buy a house, you may be surprised to find that there are many advantages to buying in winter — especially in Canada.
| Winter Real Estate Market Trends | Is it Cheaper to Buy a House in the Winter? | Homebuyer Tips for Winter |
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Winter Real Estate Market Trends
In Canada, real estate agents receive the majority of their work in the spring and summer months. In fact, for the past 3 years, the most popular month for Canadian real estate transactions has been March.
Sellers may prefer to list their homes in the Spring for a number of reasons. Perhaps the increased natural beauty of their neighbourhood makes the property look more appealing. Perhaps buyers are less inclined to attend open houses when faced with sub-zero temperatures and biting windchill.
Despite these trends, there are still some sellers that choose to list their homes in the Wintertime. Typically, these listings are more time-sensitive or urgent — if they could have waited until Springtime to sell, maybe they would have. While the curbside appeal of a home may naturally drop in the winter, there are many advantages to searching for a home in this so-called “off-season.”
Is It Cheaper to Buy House in the Winter?
Home prices can be driven by interest rates, housing supply, housing demand, curb appeal, bidding wars, or a multitude of other factors. Despite the volatile nature of the Canadian housing market, there are a few consistent trends that can make it cheaper to buy a house in the winter.
First, one can assume that if a home seller could wait until spring to sell their home, they would. As a result, many of the listings made in winter are more time-constrained than normal listings. The seller may be moving suddenly due to a new job, they may be in rapid need of cash, or they may need to close on a new home very soon.
This sense of urgency can put the ball in your court when it comes to negotiations: it’s easier to bargain down the price of a home in the winter than in the spring if there are fewer buyers competing for the property. This lack of buyers also reduces the odds of a bidding war, which can save you from price inflation that threatens to push your dream home outside your price range.
Furthermore, real estate agents aren’t the only ones to experience a slower winter season. Tradesmen, movers, inspectors, and contractors will typically have fewer projects on their schedule, and may offer favourable rates or promotions.
Homebuyer Tips for Winter
“ A slower season like winter can reduce competition, and if you’re already pre-approved, you can close on your dream home very quickly. Much faster than you would in a busy season.” — Victoria Ishai, Mortgage Broker Level 2
You can also consider the following tips:
- Use the cold weather as an opportunity to identify usually-hidden problems during the inspection. Check for leaks, drafts, or frozen pipes.
- When budgeting, consider that moving into a house during the winter may come with higher upfront heating costs.
- During the inspection, check for heating efficiency, ask about the heating utility bills.
For more personalized advice, contact Clover Mortgage to book a free consultation today.
FAQ
Are home prices generally lower during the winter months in Canada?
While buying a house in winter in Canada can be less competitive for both buyers and sellers, the market value of a home does not necessarily fluctuate based on the season. However, the lack of competition can lead to fewer bidding wars, higher urgency from sellers, and higher potential to negotiate a lower price.
Is there less competition among buyers when purchasing a home in winter?
When is the best time to buy a house? The Canadian housing market in winter is often less active, which can lead to decreased competition.
What challenges might I face when scheduling home inspections during winter?
When inspecting a house in winter, you should take special care to inspect the roof for damages, check the insulation, and note any drafts, leaks, or cracks. You should also keep in mind that some home inspectors may take an extended holiday or be non-operational during certain times in winter (especially around the holidays).
Are sellers more motivated to negotiate during the winter season?
Typically, sellers are more time-constrained during the winter season. This often makes them more open to accepting.
In this sense, perhaps winter is really the best time of year to buy a house.
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