TheRedPin.com

January 12, 2015 10:00 ET

2015 Real Estate Revelations: January 20 is Best Day To Buy

January's Third Tuesday is Tops for Deal-Hunting Home Buyers

TORONTO, ONTARIO--(Marketwired - Jan. 12, 2015) - In the cold, dark days of winter, there are fewer residential real estate listings, as sellers wait for the sunny skies of spring to join in on the high season of home sales. The conventional wisdom for buyers is to wait until spring, but five years of solid research say the conventional wisdom is wrong.

According to sales data analysis by TheRedPin.com, buyers purchasing a home in 2015 should take advantage of Toronto's holiday hangover over the next two weeks, with this period historically offering the lowest asking prices, and January 20 being the reigning day for rock bottom real estate purchases. While inventory is lower, so too are prices. Research shows from 2010 to 2014 inclusive, home prices averaged $22,338* less in January than in the next least expensive month in any given year**.

"Looking back over the past five years, the trend holds year after year, with average home prices significantly lower in January than in every other month," said Rokham Fard, Co-Founder and CMO of TheRedPin.com. "There might be less inventory, but sellers at this time are generally highly-motivated. This creates a buyer's market … but, buyers have to move fast, it's a short window."

Fard acknowledges that buying a home is not like buying a sweater, with the purchase process running from initial offer to a closing date that could be months away. However, deals struck in January are binding, even if the official close occurs during the spring real estate season.

"A home is a huge purchase, and we'd never suggest rushing into such a deal. We're simply saying that if you are in the market for a new home, the inconvenience of the cold and snow could pay off with serious savings."

A full breakdown of best buying date research is here.

TheRedPin.com's research points to several reasons for this phenomenon:

  • Those opting to sell in January are generally doing so out of necessity; given the numbers, they would wait if they could. Therefore, buyers have leverage to negotiate.

  • If a house is on the market in January, it may have been listed for an extended period of time. This could mean, the sellers are asking too much, and buyers may have more success with a lower offer.

  • There is less competition for homes in January, as the majority of people are facing holiday debt and the first credit card bill of the New Year. Big purchases are not generally in the cards for most people at this time, so savvy home buyers can avoid the bidding wars that spring is well known for.

  • TheRedPin.com Realtors® generally agree that Tuesdays are the best day of the week to begin the buying process; everyone is back in the work-week routine, and making the offer Tuesday allows for several days of negotiating before people get into weekend mode.

  • Bank of Canada mortgage rates come out earlier in the month; with lower real estate activity in January, lenders are motivated to lower borrowing rates.

* Average home prices refers to costs of detached, semi-detached, townhomes and condos.

** July was the second-most inexpensive month when prices averaged out over the five years.

About TheRedPin:

TheRedPin is the easiest way to buy or sell a property. With the largest database of residential homes for sale in the GTA, TheRedPin guarantees to save clients time and money.

TheRedPin Realtors® offer the best real estate advice, free of charge. No pressure - just answers to all your home buying, selling and mortgage questions.

TheRedPin is a hybrid of a high tech company with a savvy real estate brokerage.

To learn more about TheRedPin, visit www.TheRedPin.com/company-info.

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