Introduction:

In the realm of real estate, understanding the balance between supply and demand is crucial. One key metric that sheds light on this delicate equilibrium is the concept of "Inventory Months." In this comprehensive guide, we will delve into the significance of this metric, its calculation, and how it determines whether a market is in favor of buyers or sellers.

The Significance of Inventory Months:

Inventory Months, often referred to as "Months of Inventory," serves as a valuable supply metric that assesses the interplay between available homes for sale and their potential to be sold. By measuring this ratio, we gain insights into whether the real estate market is facing an abundance or scarcity of listings. This, in turn, provides a snapshot of the balance between demand and supply from an inventory standpoint.

Understanding Market Dynamics:

In economic terminology, the calculation of Inventory Months plays a pivotal role in identifying the market's status. An excess demand scenario arises when the quantity of homes sought by buyers exceeds the number available for sale at a given price point. This state, also known as a "shortage," translates to a seller's market in real estate, where sellers hold the advantage.

Conversely, an excess supply situation occurs when the quantity of homes demanded falls short of the available listings at a particular price. Termed a "surplus," this market state corresponds to a buyer's market in the real estate domain, granting buyers a stronger position in negotiations.

Calculating Inventory Months:

Calculating Inventory Months is a straightforward process that involves three steps:

1. Determine the total count of active listings from the preceding month.
2. Identify the total number of completed sales transactions for the same month.
3. Divide the number of active listings by the sales count to ascertain the remaining inventory in months.

Market Transition Thresholds:

A critical question often arises: At what point does a market shift from being buyer-oriented to seller-oriented, or vice versa? While this threshold varies from market to market, prevalent data suggests some general benchmarks. When Inventory Months is less than 4.0, sellers typically have the upper hand in pricing negotiations. Conversely, if the metric exceeds 6.0, buyers tend to have more negotiation leverage.

Real-Life Scenario: Canada's Market:

Currently, Canada's real estate market provides a tangible example of Inventory Months in action. With an inventory of 3.2 months, a slight increase from 3.1 in May and June, the market experiences growth of around 3.2%. However, this growth is outpaced by a 5.6% increase in newly listed properties. This dynamic underscores the challenge of maintaining equilibrium between supply and demand.

Conclusion:

Inventory Months stands as a vital metric that offers invaluable insights into the real estate market's health and dynamics. By grasping the concept, understanding its calculation, and interpreting the thresholds, both buyers and sellers can make informed decisions in navigating the ever-evolving real estate landscape. As demonstrated by Canada's market, the delicate balance between supply and demand underscores the need for continuous vigilance in assessing Inventory Months.

In July, Canada's Economic Landscape: Rising Inflation Rates and Market Dynamics

Canada's economic landscape experienced notable shifts in July, as rising inflation rates and dynamic market changes made their mark. This comprehensive analysis sheds light on key trends that shaped the economic scene, from surging mortgage costs to the impact of electricity and energy prices. Stay informed and gain valuable insights into these crucial economic fluctuations.

Introduction: Unveiling July's Economic Dynamics

July witnessed significant movements in Canada's economic indicators, with inflation rates taking center stage. This analysis delves into the intricate details of these shifts, highlighting the driving factors behind inflation and the influence of base-year effects on key sectors.

Surging Inflation Rates and Contributing Factors

Surging mortgage expenses and the upswing in gasoline prices were pivotal contributors to Canada's annual inflation rate increase. Statistics Canada's latest Consumer Price Index (CPI) reveals a rise from June's 2.8% to July's 3.3% year-over-year inflation rate. Notably, the mortgage cost index played a central role, surging remarkably by 30.6% annually. This surge was fueled by a growing number of Canadians opting to renew or initiate mortgages at higher rates. This surge follows a substantial 30.1% rise in June, marking the fifth consecutive month of record-breaking increases. Excluding mortgage interest costs, the headline CPI still demonstrated a noteworthy 2.4% rise in July.

Gasoline and Energy Prices: The Base-Year Effect

Gasoline and energy prices faced their own dynamics, influenced by the base-year effect. Despite a mere 0.9% monthly increase in July and a significant 12.9% yearly decrease, the substantial 9.2% drop in July 2022 no longer impacted the 12-month price trajectory. This shift exerted upward pressure on the year-over-year metric. Such nuances highlight the complexity of economic calculations and the factors driving them.

Electricity Prices: Base-Year Influence and Market Impacts

The base-year effect extended its influence to electricity prices as well. July saw an 11.7% annual surge in electricity costs, surpassing the 5.8% increase observed in June. A remarkable 127.8% increase in electricity prices within Alberta was a key driving force. The introduction of policy interventions in July 2022 led to a notable 24.4% monthly price reduction at that time. However, with these interventions ceasing, last year's price drop no longer affected the 12-month calculation. Similarly, natural gas prices experienced a 15.7% decline in July, a reversal from the 5.8% decrease in June. This shift was primarily attributed to a base-year effect in Ontario, where prices had risen by 22.6% on a monthly basis.

Energy and Grocery Prices: Emerging Trends

Overall, energy prices encountered an 8.2% reduction in July, following a 14.6% decrease in June. Grocery prices, although maintaining an elevated position, displayed a slower annual growth rate in July, rising by 8.5% compared to the 9.1% increase registered in June. This deceleration was largely influenced by the pricing of fresh fruit, which experienced a 4.1% annual rise in July, a notable drop from the 10.4% increase in June. On a monthly scale, prices experienced a significant decline of 6.5%, the largest drop since February 2008. This downturn was driven by a 40.9% fall in grape prices and a 1.8% decrease in orange prices.

Conclusion: Navigating Economic Changes

Stay informed about these dynamic market shifts as you navigate through evolving economic changes. Canada's economic landscape reflects the interplay of various factors, from inflation trends to the intricate impacts of base-year effects. By staying updated on these trends, you can gain valuable insights into the shifting economic terrain.

Transforming Pickering Town Centre Mall: CentreCourt's Ambitious Vision

CentreCourt, in partnership with Cowie Capital Partners Inc and Salthill Capital, is poised to redefine Pickering with a dynamic 55-acre community known as Pickering City Centre. This transformative endeavor, located at 1355 Kingston Road near the Brock Road interchange on Highway 401 and in proximity to Pickering GO station, will seamlessly integrate residential, retail, and public spaces. As the heart of Pickering evolves, its ties to the Greater Toronto Area will strengthen, solidifying CentreCourt's mission to establish this area as the authentic downtown of Pickering.

Revitalizing Pickering: A Decade-Long Urban Revival

CentreCourt envisions a vibrant urban hub emerging from the current mall site, a decade-long endeavor that will reshape Pickering's landscape. This visionary project introduces extensive residential, retail, and public zones, replacing the existing surface parking. Over ten mixed-use towers, ranging predominantly from 40 to 55 stories, will grace the skyline with over 6,000 residences. As Pickering Town Centre mall undergoes revitalization, a new era dawns for the region.

Block 1: Unveiling the Residential Oasis

In Phase 1, Block 1 will take center stage, featuring four residential towers comprising approximately 2,200 units and an impressive 111,483 m² of mixed residential and commercial space. These towers will also house a ground-level retail area spanning about 1,672m².

Elevated Living: Amenities for Every Lifestyle

Residents of Block 1 will revel in a lavish array of amenities, spanning approximately 4,552m² indoors and 7,246m² outdoors. This enticing offering encompasses a fitness center, rooftop pool, outdoor lounges with grilling stations, co-working and social spaces, a golf simulator lounge, and inviting interior courtyards that seamlessly connect with lush green spaces.

Discover more about this exciting development at pickeringcitycentre.com and witness the transformation firsthand. Your journey to the future of Pickering begins here.

On Wednesday, the Bank of Canada raised its overnight rate by 25 basis points, bringing it to 5.0 percent. This decision is part of a significant tightening of monetary policy, returning interest rates to levels not seen since the 2007-08 financial crisis. For some, this latest rate hike feels like the decisive blow that solidifies a troubling situation, while others hope it truly marks the end of rate increases. Tiff Macklem, the governor of the Bank of Canada, expresses uncertainty and asserts that further rate hikes are not off the table if deemed necessary.

The recent unexpected rate hike appears to have had an immediate impact on the sentiment of the real estate market. It could be seen as another minor warning sign, similar to the initial 25 basis point hike in February 2022, as it has achieved a comparable outcome. There are reports of distress among homeowners circulating within the real estate community, with many professionals publicly expressing empathy towards those facing difficulties.

As a result of the rate hike, commercial bank prime rates have risen to 7.20 percent. Consequently, variable rate mortgages are now hovering around the 6.0 percent range, while HELOCs (Home Equity Lines of Credit) are surpassing 7.50 percent for most borrowers. This represents a significant increase from the rates of approximately 3.0 percent that instilled great confidence in the market during the peak of the pandemic era.

Following the announcement of the rate hike, the Canada 5-Year Government Bond yield experienced a consistent decline throughout the day on July 12. It started at 3.950 percent at the opening and closed at 3.812 percent. The yields have remained relatively stable within this range, which holds crucial importance as it serves as the primary pricing gauge for fixed-rate mortgages.

In Canada, fixed-rate mortgages are closely linked to government bond yields, specifically the yields of Government of Canada bonds with similar maturity periods. As bond yields rise, lenders are compelled to raise mortgage rates to make them more attractive investments compared to those bonds. If not, banks would prefer investing their funds in bonds, which are regarded as one of the safest investment options. Typically, banks add a risk premium to mortgage products, resulting in pricing at "GOC+2" or the bond yield plus 2.0 percent. Based on the current yields, this would translate to mortgage rates in the range of high 5.0 percent to low 6.0 percent.

Conversely, when bond yields decline, fixed mortgage rates tend to follow suit, making them more affordable for borrowers. Therefore, fluctuations in Canadian bond yields play a significant role in influencing the direction of fixed mortgage rates in the country.

This is the primary challenge faced by the Bank of Canada. Currently, a majority of homebuyers opt for fixed-rate mortgages due to their more favorable pricing compared to variable-rate mortgages. Consequently, when the central bank raises the interest rate, it does not significantly affect the demand side of the equation. Instead, it exerts pressure on the supply side, leading to financial strain and creating an incentive for property owners to sell. From the sounds of it, this is precisely the outcome they have achieved, as an increasing number of sellers are conceding to the Bank of Canada's influence. As a result, new property listings are generally surpassing sales, a trend that hasn't been observed for some time.

The Bank of Canada's focus on the housing market became evident through its Quarterly Monetary Policy report. Additionally, during the subsequent press release, Governor Macklem indicated a shift in reliance from unemployment as a key performance indicator (KPI) to placing increasing importance on the housing market and immigration in establishing potential outcomes for the Canadian economy.

In the release, Macklem acknowledged the significant impact of the interest rate hikes on the housing market, leading to a notable slowdown. However, he also noted that the slowdown was not as substantial as initially anticipated, and housing activity has since rebounded.

Macklem referred to the previous year's significant decline in house prices, which began following the initial rate hike in February. This decline resulted in a nearly 20 percent year-over-year drop in house prices, surpassing the previous record "crash" in house prices experienced by Canada in 1989.

Now we come to the significant questions: Is the ordeal reaching its conclusion? When will things start improving?

Initially, Macklem hinted that 5.0 percent might be the limit or the point at which he would cease increasing the overnight rate. We must remember that the Bank of Canada (BoC) has a mandated target rate of 2% to achieve. Finally, the overnight rate has significantly exceeded the inflation rate. This indicates that, when adjusted for inflation, the real interest rate has become positive.

The real interest rate is calculated as the nominal interest rate minus the inflation rate.

Traditionally, the nominal interest rate needs to align with the inflation rate before a reversion begins. On average, interest rates tend to remain at their peak for around nine months before rate cuts are implemented.

In June 2023, home sales and the average selling price in the Greater Toronto Area (GTA) remained higher compared to the previous year. However, when considering seasonal adjustments, sales showed a decline compared to the previous month. On the other hand, the seasonally adjusted average selling price and the MLS® Home Price Index (HPI) Composite benchmark increased compared to the previous month.

 According to Paul Baron, President of the Toronto Regional Real Estate Board (TRREB), the demand for owning a home is stronger than last year, despite the increased costs of borrowing. However, uncertainty surrounding the Bank of Canada's stance on inflation and interest rates affected home sales last month. Additionally, the persistent lack of available properties likely deterred some potential buyers who couldn't find a home that suited their needs. Essentially, if a home isn't available, it cannot be purchased.

In June 2023, GTA REALTORS® recorded a total of 7,481 sales through the MLS® System of TRREB, marking a 16.5 percent increase compared to June 2022. However, the number of listings decreased by three percent during the same period.

 The rise in sales compared to the previous year, along with the decline in new listings, indicates that market conditions in June were more competitive than during the same period last year. The average selling price experienced a 3.2 percent increase, reaching $1,182,120. However, the MLS® HPI Composite benchmark still showed a 1.9 percent decrease compared to the previous year, marking the slowest annual rate of decline in 2023. On a month-over-month basis, both the seasonally adjusted average price and the MLS® HPI Composite benchmark demonstrated an increase.

“A resilient economy, tight labour market and record population growth kept home sales well above last year’s lows. Looking forward, the Bank of Canada’s interest rate decision this month and its guidance on inflation and borrowing costs for the remainder of 2023 will help us understand how much sales and price will recover beyond current levels,” said TRREB Chief Market Analyst Jason Mercer.

 “GTA municipalities continue to lag in bringing new housing online at a pace sufficient to make up for the current deficit and keep up with record population growth. Leaders at all levels of government, including the new mayor-elect of Toronto, have committed to rectifying the housing supply crisis. We need to see these commitments coming to fruition immediately, or we will continue to fall further behind each month,” stressed TRREB CEO John DiMichele. “In addition to the impact of the listing shortage, housing affordability is also hampered on an ongoing basis by taxation and fees associated with home sales and construction as well as the general level of taxation impacting households today. Going forward, we need to look at all of the factors influencing the household balance sheet and people’s ability to house themselves,” continued DiMichele.

 As professionals in the industry, it is crucial for us to adapt to these changing circumstances and strategize accordingly. We must proactively assess the market conditions, provide accurate and up-to-date information to our clients, and offer suitable guidance to navigate these new challenges effectively.

By staying informed about the latest developments, tracking interest rate trends, and understanding buyer preferences, we can position ourselves to better assist both buyers and sellers in achieving their real estate goals. It is vital to offer thorough market analyses, comprehensive advice, and personalized solutions to address the concerns that our clients may have.

 Source: Market Watch

As always, we are here to guide and educate all our clients, if you have any questions we are just a text, email or phone call away!

In light of increasing household debt and elevated interest rates, the Financial Consumer Agency of Canada (FCAC) is taking measures to ensure that banks offer appropriate assistance to mortgage holders facing potential default.

Recently, the FCAC released a fresh guideline instructing federally regulated financial institutions (FRFIs) to deliver customized support to individuals who have mortgages on their primary residences and are undergoing "significant" financial challenges.

Based on findings from FCAC research, there is a notable increase in the number of homeowners with mortgages who are facing potential financial difficulties, such as relying more on borrowing for daily expenses or depleting their savings.

The FCAC emphasized that all feasible mortgage relief options should be taken into account, which may include measures like waiving prepayment penalties, internal fees, and costs, refraining from charging interest on interest, and extending the amortization periods.

FRFIs are encouraged to take proactive steps by reaching out to mortgage holders at risk and offering them details about available relief measures, enabling them to make well-informed decisions in a timely manner. Furthermore, FRFIs are expected to provide educational tools and resources at no expense to the consumer, aimed at promoting responsible financial decision-making.

Stay informed, Stay up to date - The Olivera Group Real Estate 

Anthony Olivera & Ann Rahinel - info@theoliveragroup.com

Exciting progress is unfolding in Mississauga as Exchange District Condos, developed by Camrost-Felcorp, takes center stage in the city's skyline. This remarkable multi-tower development, masterfully designed by Arcadis, is making significant strides towards becoming the tallest building in Mississauga, poised to surpass the current record held by Absolute World's 176-meter south tower.

Exchange District Condos represents the epitome of urban transformation and promises a dynamic lifestyle at the heart of Mississauga. Immerse yourself in the thriving downtown core, where culture, commerce, and connectivity seamlessly converge. With a prime location and contemporary design, Exchange District Condos offers unparalleled living spaces, workspaces, and retail options.

Two towers within this extraordinary development will exceed the impressive 200-meter milestone, making a bold statement in architectural achievement. As construction progresses, the cityscape is already undergoing a transformation, with the 60 and 72-storey towers taking shape before our eyes.

To learn more about the remarkable Exchange District Condos and delve into the exciting world of preconstruction opportunities, we invite you to reach out to Ann and Anthony from the Olivera Group. Their expertise and in-depth knowledge of real estate investing and preconstruction will guide you towards making informed and educated decisions. 

Contact Us

Anthony Olivera & Ann Rahinel - info@theoliveragroup.com or (647) 951-0850

According to Statistics Canada's report on Tuesday, Canada witnessed a deceleration in its inflation rate to 3.4 percent in the year leading up to May. This slowdown can be attributed to notably lower prices of gasoline. In April, the inflation rate stood at 4.4 percent, making the current decrease quite significant.

The primary factor driving this deceleration is the decrease in gasoline prices. If we exclude the impact of gasoline, the inflation rate would remain at 4.4 percent. The average decline of over 18 percent in gasoline prices compared to their peak levels last year has played a major role in dragging down the overall inflation rate on its own.

However, despite the apparent deceleration in consumer prices, various aspects of the cost of living continue to rise significantly.

The rate at which grocery prices are increasing is nearly nine percent, only slightly lower than the 9.1 percent rate observed in April. Moreover, this rate is nearly three times higher than the overall inflation rate.

Food prices have consistently been on the rise at a faster pace than the officially reported inflation rate for over a year now.

Moreover, the expense associated with maintaining a place to live continues to surge at an alarming rate.

The mortgage interest cost index has soared by 29.9 percent, marking the highest pace ever recorded. This escalation is a result of the Bank of Canada's aggressive increase in lending rates, aimed at dampening demand.

Variable rate mortgage holders have been particularly impacted, as the cost of servicing their loans has been skyrocketing throughout the year. Even those with fixed-rate loans are facing the need to renew and secure new loans at substantially higher rates than their previous ones.

The increased cost of mortgages stands as the primary factor influencing the inflation rate, according to the data agency. If mortgage expenses are excluded from the calculations, Canada's headline inflation rate would have been 2.5 percent, down from 3.7 percent in April.

Leslie Preston, an economist at TD Bank, pointed out that even if we exclude volatile factors such as gasoline and mortgages, the underlying inflation remains at a level that would likely lead the Bank of Canada to consider another rate hike in the future.

"While the decrease in goods inflation is positive, it is likely that the Bank of Canada has already taken that into account as supply chain disruptions ease," she explained. "Although Canadian inflation has continued to moderate in May, it is unlikely that the progress made will be sufficient to deter the Bank of Canada from implementing rate increases in July."

Navigating the ever dreaded LOWBALL OFFER When Selling Your Home

Opinions vary regarding the definition of a "lowball offer." Some individuals consider it as an offer substantially below the listed price, while others perceive it as an offer significantly below the market value. In this blog, we will refer to "lowball offers" as those that are considerably below the asking price or below market value.

Receiving lowball offers can be disheartening but it is possible to handle them effectively. Here, we provide our top recommendations:

Understanding the Buyer’s Motivations

Gaining Insight into the Buyer's Intentions Before Responding to a Lowball Offer

When faced with a lowball offer, it is essential to comprehend the motivations driving the buyer. Typically, lowball offers originate from buyers in the following situations:

1. Bargain hunters: Some opportunistic buyers or investors are actively seeking a favorable deal and aim to purchase a property below its market value. They employ lowball offers as a strategy to identify sellers in desperate circumstances.

2. Budget limitations: Occasionally, buyers develop a strong affinity for a property that surpasses their financial capabilities. Although they may recognize the value of your home, their budget restricts them. As a result, they may submit an offer lower than your asking price, hoping for a fortunate outcome.

3. Renovation plans: Surprisingly common, certain buyers intend to renovate the property and deduct their estimated renovation expenses from the asking price. They may fall in love with a house but perceive the need to replace the kitchen and bathrooms, resulting in an offer lower than the listed price. It is important to note that personal renovation plans do not directly influence a property's market value.

4. Negotiation tactics: Some buyers, and their agents, relish the art of negotiation and utilize lowball offers as a means to shift the dynamics of the negotiation process. While their true intention might be to pay the market value, they engage in protracted negotiations as part of their strategy.

5. Lack of knowledge: Many buyers rely on their real estate agents to assist them in comprehending a property's value. Regrettably, not all agents possess extensive experience in property valuation. There have been instances where ill-informed agents have advised buyers to submit offers significantly below the asking price, leading to disappointment and frustration for both parties involved.

6. Genuine concerns about property value: While you may not necessarily agree with their perspective, some buyers may genuinely believe that your home is worth considerably less than your listed price. They may have reservations regarding its value, which drives them to present a lowball offer.

By understanding the motivations behind the buyer's offer, you can engage in more effective negotiations and potentially increase the chances of a successful sale.

Are You Priced Right?

Do you have substantial comparable sales data, indicating nearby properties with similar characteristics that support your asking price? Have you taken into account the prevailing market conditions?

HOMEBUYERS today are SMART! – they can quickly identify an overpriced residence, just as readily as they can recognize an underpriced one. If you're selling your home and have received numerous lowball offers, it may indicate that your price is set too high.

Don’t Take it Personally

While receiving a lowball offer can feel personal, it's crucial to keep in mind that buyers are primarily focused on securing the best possible deal for themselves. I've witnessed sellers react emotionally to such offers, refusing to engage in negotiations—I've even found myself in that position. However, if you can prevent yourself from becoming defensive, you'll enhance your likelihood of achieving a successful outcome.

Counteroffer with a Realistic Price

When faced with a lowball offer, it is crucial to respond with a counteroffer that reflects a realistic price. Take into account the present market conditions, recent comparable sales in the vicinity, and any improvements or renovations you have made to the property. Your counteroffer should be grounded in objective factors rather than emotions or a desire to retaliate against the buyer. Just because the buyer may be engaging in strategic maneuvers, there is no obligation for you to follow suit.

Be Willing to Walk Away

If the buyer demonstrates an unwillingness to engage in negotiations and presents an unfair price, you might need to consider withdrawing from the transaction. Certain individuals who submit lowball offers are solely seeking an advantageous deal and may never intend to pay the property's market value.

The Office of the Superintendent of Financial Institutions (OSFI) in Canada announced on Tuesday that it would raise the stability buffer for the country's major banks by 50 basis points to 3.5%. The decision, set to take effect on November 1, was made in response to increasing borrowing costs, high levels of debt, and pressures on the financial system.

In its statement, the OSFI expressed concerns about elevated household and corporate debt levels, the escalating cost of borrowing, and heightened global uncertainty surrounding fiscal and monetary policies. With the financial sector demonstrating resilience in recent quarters, the OSFI deemed it an opportune time to take action.

Superintendent of Financial Institutions Peter Routledge stated, "We are implementing measures to strengthen the resilience of Canada's largest banks against vulnerabilities." The regulator's action comes amid growing concerns about the ability of Canadians to manage their debts, with rising worries about potential increases in delinquency rates for mortgage payments.

Anticipating economic challenges and consumers' struggles to make payments, major banks have already allocated additional funds.

According to Desjardins analyst Royce Mendes, the purpose of the higher buffer is to provide extra capital as a safeguard for future uncertainties.

The cautious approach taken by both regulators and the regulated institutions is expected to enhance global investors' confidence in the stability of the Canadian financial system.

The stability buffer, established in 2018 to bolster banks' capital resilience against vulnerabilities, is reviewed semiannually but can be adjusted at other times.

The common equity tier 1 ratio for Canada's top six banks will now rise to 11.5%, up from 11%. This ratio compares a bank's capital with its risk-weighted assets and measures its ability to withstand economic downturns.

As of the end of the first quarter, the ratio for the six largest banks ranged between 11.9% and 15.3%, with most banks targeting a 12% ratio by the end of 2023.

This marks the second consecutive increase in the size of the buffer by the OSFI. In December of the previous year, it raised the buffer by 50 basis points to 3.0%. The buffer had been lowered during the pandemic but has been raised in the past two years.

One of the most common questions homebuyers ask us is “when is a good time to buy a house?” There isn’t one good answer, because there are so many factors that go into your decision to buy a house. You can’t always time the real estate market to line up with your personal life, such as if you’re downsizing, upsizing, getting married, getting divorced, having a child, or going through any other major milestone that is leading you to look into buying a house.

If you’re getting ready to buy a house, here are some reasons why it might be a good time to buy a house.

YOU NEED TO UPSIZE BEFORE YOU COMPLETELY OUTGROW YOUR HOME

Making do in a house that’s too small will only work for so long. If you’re expecting a new family member, either because you’re about to have a baby, adopt a child, or have a family member move in permanently, then it’s a good idea to upsize before the change happens. This will give you time to buy a new home, sell your old home, and settle in before making another major transition.

YOU HAVE TO DOWNSIZE IN A HURRY

Whether your adult kids have moved out, you’re dealing with the death of a close family member, or you just got divorced, you might need to downsize suddenly. Because you’ll tend to save money by buying a smaller home, you don’t necessarily need to worry about timing a downsize with the market. If you have too much house and need to get into a smaller space, you should do so when you’re ready instead of hanging on to the burden of maintaining a large house when you don’t have the time or money to do so.

YOUR FAMILY NEEDS TIME TO TRANSITION

One reason summer is so popular for moving is because it gives families time to settle in to their new neighborhoods before school starts. This is especially important if you’re moving to a new school district. It’s hard enough to pull kids away from their familiar friends, teachers, and routine. If transitioning during the summer instead of pulling them out mid-year works for your family, then that’s what you should do.

No matter what’s motivating you to buy a house, whether it’s your first house or your fifth, you should start with timing it based on your life. There will always be houses on the market, so focusing on when it makes sense for you to move instead of when it’s the best time to move based on the market might be what works best for you and your family.

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