How do you choose the right time for the best real estate deals?

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August 8, 2024

How do you choose the right time for the best real estate deals?

Key facts:

The timing of your real estate project can significantly influence the real estate offers you receive.
The importance of real estate market cycles in understanding trends and planning your project.
The best times to buy are in winter and at the end of the year, when there’s less competition and better negotiation, but the market offers opportunities all year round.
Analysis of market conditions and statistics enables you to make informed, quantified decisions.
A country’s economic situation remains a key indicator for understanding the dynamics of the real estate market as a whole.

When it comes to relocating, timing can have a huge impact on the type of real estate offers you can get. Whether you’re looking to buy or rent, understanding market trends and seasonal fluctuations can help you get the best value for your money. This article will guide you through the intricacies of timing your move to find the best real estate deals.

Time needed: 7 minutes

Real estate market cycles
Economic indicators for the Montréal real estate market
When is the best time to buy a home?
When is the best time to rent a property?
Choose the right time for your real estate project and save on moving costs
Analysis of regional real estate regulations
Monitor market analysis

Real estate market cycles

The real estate market operates in cycles, influenced by economic conditions, interest rates and seasonal trends.

By understanding these cycles, you can plan your project at a time when you’re likely to get the best deals. As a general rule, the market experiences peak periods in spring and summer, which are generally the busiest times for real estate transactions.

Families prefer to move during these months so as not to disrupt the school year, but this increased demand can drive up prices. Conversely, autumn and winter see a slowdown in the market. Fewer people are looking to move, which can translate into better deals, as sellers and owners are more inclined to negotiate.

However, as Kyle mentions, seasonality is more diluted since the covid period, offering a more flexible and dynamic market.

“Historically, the real estate market follows seasonal cycles, with one season following another.

However, since the Covid crisis, seasonality has become less pronounced, with more constant activity throughout the year. Seasonal variations have been attenuated by changes in buying and selling behavior, making trend forecasting more complex but also more dynamic.”

Kyle Shapcott, leader in real estate

Economic indicators for the Montréal real estate market

Economic conditions play a crucial role in the real estate market.

Interest rates, for example, have a considerable impact on the market. Lower interest rates make borrowing cheaper, which encourages more people to buy homes, which can drive up prices.

Conversely, higher rates can cool the market, allowing for better deals.

Employment rates also influence the market. High employment figures boost consumer confidence, encouraging more people to buy homes, while higher unemployment rates can lead to lower demand and better deals for buyers.

Other indicators are also strategic at the macroeconomic level: inflation, country and sector growth, economic policy… all factors to be taken into account to assess the market situation at a given moment.

Don’t miss our latest analysis of the impact of the Bank of Canada’s rate cut.

Read the article

When is the best time to buy a home?

Buying a home requires careful planning.

To maximize your chances of getting a good deal, think about the winter months, but don’t neglect other times of the year.

During this period, there is generally less competition, as fewer buyers are looking to acquire a home. This means greater bargaining power and more attractive deals, especially for properties that have been on the market for a long time. What’s more, sellers who offer their homes in winter are often more motivated to sell, which can lead to lower prices and more flexibility in negotiations.

The end of the year is another good time to buy. Sellers may be keen to close deals before the end of the year to benefit from tax deductions, and some may cut prices to avoid incurring costs in the new year.

However, the timing of your project is not the only indicator of the best time to buy. There are also :

Current interest rates.
Inventory
Price fluctuations
Time on the property market.

Reading and understanding all these indicators gives you a more comprehensive view of market conditions and your bargaining power when making an offer.

When is the best time to rent a property?

Renting a property also has its optimum periods. Late autumn and winter are generally the best times to rent or buy a property.

With fewer people moving out during these months, landlords can lower rents to occupy vacant units. They may also be more willing to negotiate lease terms and move-in dates, giving you greater flexibility and potential savings.

In addition, reduced competition means you have a wider choice of available housing, which increases your chances of finding a home that meets your needs.in addition, reduced competition means you have a wider choice of available housing, which increases your chances of finding a home that meets your needs.

Certain periods are also symbolically known as moving periods on the island of Montreal, notably the summer months when the search for housing intensifies and rental opportunities are more numerous but also more competitive.

Choose the right time for your real estate project and save on moving costs

The timing of your real estate project can have an impact not only on property prices, but also on moving costs.

To save money, consider moving during the off-peak periods of autumn and winter. Moving companies are less busy during these periods, which means lower moving costs.

In addition, it can be advantageous to schedule your move in the middle of the month, as most people move at the beginning or end of the month, allowing you to save money and negotiate prices with companies offering this service.

Analysis of regional real estate regulations

Real estate trends can vary considerably from one region to another.

Urban areas, for example, often have more volatile markets with faster turnover rates. Timing can be more critical in these areas due to higher demand and competition.

By contrast, prices are more stable in suburban and rural areas, which can nevertheless benefit from seasonal trends. Understanding the specific market dynamics in your desired location can help you make more informed decisions.

Therefore, when assessing market trends in urban areas, focus on the following points:

Distribution of supply and demand
Turnover rates in the sector.
Recent price fluctuations.

For suburban and rural areas, on the other hand, consider the following:

Market seasonality.
Occupancy rates.
Median prices in the area.

Evaluating these factors will help you choose the right time for your move, so you can take advantage of the best real estate offers in your area.

Monitor market analysis

Regular review of market reports can provide valuable insights into the best times to move.

Check housing stock levels, as more inventory means more choice and potentially better deals. Monitoring price trends over several months can also help you identify the best time to buy or rent. Market reports can provide detailed information on current conditions, enabling you to better plan your project.

We conduct a monthly market study on the island of Montreal. Consult our latest statistics from the APCIQ to understand and navigate the market.

Consult real estate professionals for the best real estate deals

Real estate agents and brokers have a wealth of expertise and local knowledge that can help you plan your move effectively.

Their in-depth market knowledge enables them to provide comprehensive market analysis, with detailed reports on current conditions and emerging trends. This information can be crucial in determining the best times to buy or rent, ensuring that you make decisions based on the most up-to-date and accurate data available.

If you’re on the fence about hiring a real estate broker for your project, we encourage you to read our article on the subject: Why work with a real estate broker.

Also, according to Harris Movers, working with professional agents can greatly enhance your real estate experience and project, giving you the confidence and support you need to get the best real estate deals.

In addition, real estate professionals can offer invaluable negotiating tips and strategies, tailored to specific timing and market conditions. For example, they can advise you on when sellers or owners are more inclined to negotiate due to lower demand or economic pressures. This can result in significant savings and more favorable terms.

The benefits of flexibility

Flexibility in the timing of your move can have a significant impact on your ability to get the best real estate deals.

Consider options such as short-term rentals if you find a good long-term deal a few months down the line. This flexibility can enable you to negotiate better terms with sellers and landlords, knowing that you can act quickly or wait for the right deal, saving you money and stress.

This approach allows you to avoid the rush and pressure of busy periods.

You can also take advantage of sudden changes in the market that may present unexpected opportunities by remaining adaptable.

Conclusion

By choosing a strategic moment to plan your real estate project and move, you can make significant savings and get better real estate deals.

By understanding market cycles, monitoring economic indicators and consulting professionals, you can make informed decisions that match your financial goals.

Whether buying or renting, the key to finding the best real estate deals is to adapt to market conditions and be flexible in your relocation plans.

If you’re planning a real estate project, put your trust in our team of Montreal real estate brokers.

Valérie Lacasse

valerie@equipels.com

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Valérie has been a real estate broker for over 10 years. Passionate about the industry and Montreal, she is one of Montreal’s most influential brokers, guaranteeing expertise and comprehensive support for her clients.

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