Is There a Right Time to Buy and Sell?

A lot of my clients ask me, is there a right time to buy and sell real estate? What they really mean is how do I think the market will fluctuate. My crystal ball is only as good as the next, but these are some of the key factors to keep in mind when trying to predict where the real estate market is going:

Buying and Selling at the Same Time

If you are buying and selling simultaneously, as long as the timing is right for you, there really is no wrong time as the market will be relative. A relative market means for example if you are selling high, you will likely be buying high and vice-versa.

Interest Rates

Look for news of the Bank of Canada's interest rate. The Bank of Canada sets the standard lending rate to banks. Usually, if interest rates rise, it causes the real estate market to cool.

Lending Policies

Look to see if lending policies may be changing. For example, the banks had changed the standard mortgage stress test of all borrowers a few years ago which caused the record-breaking prices of 2017 to dissipate.

Election Time

In particular, during federal elections there tends to be uncertainty with what governments will come into power and what changes they could implement in regards to lending restrictions. This could cause either a boost or a stall in the real estate market.

The Economy

The overall economy can play a role in home prices but many other factors can influence this as well such as supply and demand.

In general, the more information you can obtain the better the assumptions you can make. While nothing is set in stone, the housing market has increased on average 5% per year. If you have further questions about if there is a right time to buy and sell real estate, and for all your other real estate needs, contact me today. Let me help you put down roots in our beautiful community.