Many agents are strategizing with their clients who are looking to sell over the next 60 days, encouraging many to wait until September to list their homes as prices are due to rise.
“It really depends on the property type,” said Tracy An, a real estate agent with Bosley Real Estate. “For condos, they typically sell well all year no matter what time of the year but for single-family homes, I am encouraging some of my clients to wait until September when people are done with vacation and they will be more offers for sellers to consider.”
With a short amount of listings during the latter part of the summer, many agents are convincing sellers to wait as Geoffrey Grace, a real estate agent with ReMax Hallmark Realty Ltd., did when he found that the average price of a home in Toronto is five per cent higher in September than in August, according to stats he’s collected over the last four years.
“I think people just shut down,” he told the Globe and Mail in an interview. “In the fall they start to notice [the house] is a little bit too small and they’re on top of each other.”
The discovered trends are that much more interesting with the Bank of Canada lowering a key lending rate 25 basis points to 0.50 per cent.
Analysts have suggested the decision may encourage Canadians to borrow more heavily for homes and other purchases, but economists say the cut won’t ignite the housing market the way the central bank’s surprise cut in January did because many had been anticipating a further rate cut for some time.
Ralph Fox, a real estate agent with Sage Real Estate, agreed with An, saying that sellers should consider their options on a case-by-case basis. The agent himself has a property that he plans to list in September when activity will rise.
“September may be a better time for sellers’ to sell but I think that August is going to be busy from a buyer’s standpoint because of the Pan Am Games,” he said. “I think things were a lot slower than usual with the event here in Toronto so people took precautions accordingly. We’ll see a busier August than in years past because of it.”