Is it a Good Time to Sell My House?

| Selling

The real estate market is a volatile being that can throw a wrench into your plans in the blink of an eye. You can have things all mapped out, right down to the moment you want to list your home, only to find something comes up like a dream job outside of town, an agent knocking on your door with an offer you can’t refuse, or something unexpected and challenging like the loss of a job or health issues. So when a client asks when the best time to sell a house is, there simply isn’t a good or bad time to sell.

There is only a time that is right for you. Here we share useful insights to help you decide when to sell your house.

It’s Okay to Plan, Just Be Prepared to Pivot

Despite not knowing what the future holds real estate market-wise, it’s okay to have a plan in mind regarding your home. For example, you might have a timeline to sell based on something like the birth of a second child, becoming an empty nester/retiring, or paying off your mortgage. These are all logical milestones that make sense for home changes while helping you set goals whether upsizing, downsizing, or relocating.

The trick is that you have to be prepared to pivot. As a parent, you might get a big promotion that allows you to afford a bigger home before that second child arrives. You might inherit money that provides the cash to pay off your mortgage, so you decide to retire and downsize sooner. You might be forced to sell if your mortgage becomes unmanageable after job loss or increased interest rates at renewal. A plan sets goals, while flexibility allows you to be responsive to unexpected life and market changes.

Do you have more questions about selling your home? Read these posts next for answers:

Understand the Challenges of the Sell/Buy Scenario

Sell/buy scenarios also impact your decision and timing to sell, presenting the following possible opportunities and challenges:

  • You sell and upsize: When prices are down and the market is slow, you can find a larger home for less. However, your home is also going to be worth less, giving you less equity. When prices are high, you’ll get more for your current home but then face higher costs for your next home. The slower the market tends to be, the better the scenario, as long as you won’t lose money when you sell. For example, if you own a condo, your losses will be noticeable, making it difficult to afford a larger home.
  • You sell and downsize: In this case, the slower market can work in your favour, especially if you have paid off all or most of your mortgage. You will still see a respectable return on your investment, have a fair penny to invest in your condo, AND pay rock-bottom prices for a nicer condo with better amenities in your preferred neighbourhood.
  • You sell and “same-size” in a different location: This one is simple, as regardless of the market, buying a similar-sized home tends to cost more if moving to a larger city and progressively less the further you are from the GTA or other desirable cities like Kingston or Ottawa.
  • You sell and rent: If you intend to rent in the current market, you will find rental options at lower prices than a new mortgage. On average, a one-bedroom condo mortgage will cost $2,800 to $3,000 a month, while rent for a similar unit sits just below $2,000, saving you $800 to $1,000 a month.
  • You sell and move in with parents or a similar situation: In this case, there really isn’t much to consider other than potential losses if you own a condo. The rest is hopefully gravy!

Your decision to sell could also be influenced by the type of property you’re selling, what’s going on in the world, or what season we’re currently in. For specific selling advice catered to some of these situations, read these posts next:

Keep an Eye on the Real Estate Market

Homeowners should keep an eye on the real estate market because it doesn’t hurt to understand your home’s changing value. Even if your best-case scenario is to simply stay put, your home’s value impacts other aspects of your finances, such as funds available for a home equity loan to cover the costs of aging in place or the potential for your mortgage being underwater if you have a second mortgage.

From a seller’s standpoint, following market trends helps you decide if it is a good time to sell when there is nothing pushing your hand to do so. So, is now a good time to sell a house in Ontario? It depends! A crack real estate team in Toronto (like us!) can keep you updated on market trends and discuss your situation to help you make an informed decision.

Would you like some advice on how much you can get for your home or suggestions on how to sell it for the most money? Then call us at 416.291.7372 or email us today. We’re happy to help.