Should You Sell Your Home in the Spring or in the Fall?
Is it better to sell your home in the spring or wait until the fall?
The best answer is always based on your goals and life restraints. Choosing the timing of selling your home can be tricky. You need to consider so many variables like your family’s preferences, your children’s school, work arrangements, and many other things.
And while you are thinking of strategies to sell your house, you need to give the same energy to finding your next home.
Here are three different charts to help you come up with an informed decision for your next move.
Sales vs New Listings
This chart shows the number of sales versus new listings in Calgary from February 2013 all the way up to February 2022.
As you can see, the numbers typically dip around November to February. That means fewer listings come on the market. However, almost every time we go out of spring highs, there is a minor blip in the fall around September. Then it drops over the winter.
Here’s the interesting part, there were only two times when the number of new listings was less than the number of sales. This trend was recorded around November 2013 to February 2014 and November 2021 to November 2022. The rest of the record shows more listings than sales over the winter months.
Months of Inventory
Months of Inventory is the relationship of sales pace to the number of properties currently on the market. Anything between two and a half to four months of inventory is considered a seller's market. Around four months is a balanced market, and above six months is a buyer's market.
Back in 2014, Calgary was in a seller's market. It is the same as what we are seeing right now, but the months of inventory this year is so much lower than we have seen in a very long time.
Only in 2020 has there been a significant spike, coming out from 2015 to 2019. Calgary real estate has been in the buyer's market for five years. And yet, we have been pushed quickly into a seller's market right now.
This chart explains the correlation between sales and inventory. You can notice that when there are fewer listings in the market than sales, prices tend to go up, like in 2013 to 2014 and 2021 to 2022! And as soon as you see the gap between sales and new listings becoming larger, prices start decreasing.
Last spring, in 2021, we saw the benchmark price of properties somehow equalled to what we saw back in 2014. And now, that number is so much higher with all the changes happening in Calgary.
Based on the numbers, sellers will see more buyers in the springtime than in the fall. However, competition is also more intense in the spring than in the fall. If you are in a market where prices decrease, there would probably be less competition.
Right now, you can see a crazy amount of listings coming on the market, and more sales are happening as well. That means Calgary real estate market will have a lot of activity in spring. And so, this spring will probably be better than the fall.
Though the interest rates are changing right now, it does not necessarily mean that it can cause the market to slow down. Many people outside Calgary are planning to relocate here in the near future, so we have more buyers added to the market.
Aside from checking the numbers to strategize, you also need to look at your lifestyle to create a solid plan.
If you have a rental and live in another home, it could be easy. However, if you need to sell your current house before buying another one, your family life can be really disrupted.
It could be challenging if you already have a buyer for your home, but you do not know where to move yet. Whether it is your children’s school, wanting to be close to a particular sports area, or whatever the situation is, family life can dictate when you can actually sell.
Generally speaking, it will still be good to sell your home over the next year or two because property prices have really increased. You will see equity in your home even if you bought it in 2014 or 2015.
When you find that next home, the most important thing is to have a plan. Whether you are writing multiple offers while waiting or plainly waiting patiently, you need to have a strategy and a plan in place to pull the trigger fast when the perfect home comes along.
Once you have secured your next home, you need to plan the timing of your move and prepare everything. Do that homework and the extra work upfront so that you can move quickly on the backend. Your plans may not come to fruition, but at least you have some set guidelines to streamline the process.
If you need help understanding the numbers more in-depth or need a guide in making your next move, book a call with us, and we will be happy to help!
Posted by Jared Chamberlain on