In a seller's market, the first Tuesday in May is a better bet than any other date in 2016
TORONTO, ONTARIO--(Marketwired - April 25, 2016) - According to data analysis homeowners selling their homes can expect to net an average of $17,000 more if they play their cards right and list on Tuesday, May 3 this year. Sellers can also expect to sell 18 per cent faster if they list anytime during the month of May. The second best month to list is October, when homes sell for an average of $10,000 more than the yearly average.
Data collected between 2012 and 2015 reveals that even with the spike in premiums during peak season, the most highly priced homes on average are not selling in the City of Toronto. According to the data, homes in Oakville, Richmond Hill and Markham sold for an average $150,000 higher than homes in the City of Toronto.
A longer data analysis done between 2010 and 2015 compared sold prices in May to the tepid January market and found that homeowners were able to sell their homes for upwards of $60,000 more in May.
"By listing your home early in the week, you get the shoppers who are keen to see homes before open houses, which usually take place on weekends," says Rokham Fard, Co-Founder and CMO at TheRedPin. "Data from the past six years suggests that homes take 20 to 30 days on average from when they're listed until they're sold. With that in mind, listing in early May will likely position you to sell your home in May and reap the extra profits."
Not just a seller's market: May brings home buyers choice
The month of May sees the highest volume of new listings appear on the market, with an average of 20,105 new properties listed during its 31 days. May also sees the highest level of buying activity than any other month of the year, with around one-eighth of all home sales in the GTA taking place in May.
"Although spring is ripe for bidding wars, those who value choice over price can rest assured May is a good time for the house hunt," says Fard.
For prospective home buyers looking for choice as well as value, there are areas outside the city core where homes are listed for less during the month of May compared to yearly averages, according to Toronto Real Estate Board (TREB) data collected between 2012 and 2015. For example, when analysing calendar averages, homes in Aurora, East Gwillimbury and Essa sold for an average of approximately $17,000 less in May.
"For condo seekers, May is the month when many pre-construction developments release their coveted floor plans and pricing structure," says Fard. "May can be excellent for condo resales as well. In 2015, on average, condos sold for two per cent below asking in May, so it will be interesting to see if that trend continues this year."