Should You Buy a House in the Winter?
November 7, 2019 | Posted by:
Winter is upon us, and that fact poses a question for prospective home buyers in Winnipeg - is it better to wait out the season before entering into a mortgage? After all, there’s a lot going on with the weather, the Holiday season, and all that comes as one fiscal year ends and another begins. On the surface this initial way of thinking may make sense, but when you dig a little deeper through the snow you’ll find that the opposite is true. Here’s why.
4 Reasons Why the Start of the Winter Season is a Great Time to Get a Mortgage in Winnipeg
Sellers Are More Desperate to Sell
We get the concern about entering into a mortgage in Winnipeg’s most wild of seasons, but the same “logic” behind those concerns is what makes it prime time for those willing to take action. Other prospective buyers and investors slow their row at this time of the year which makes sellers more desperate to unload. Better yet, many of them want to sell before the end of the tex year, which will make them more willing to accept an offer below their initial asking price. They may even be willing to throw in some concessions regarding closing fees, furnishings, and more.
You’ll Have a Better Pick of the Litter
This carries over from the point above. With other buyers taking their foot off the peddle the race to snatch up favorable inventory is less competitive. As we recently stated in our Winnipeg real estate news update for autumn 2019, inventory is already very strong, and when you factor in the traditional seasonal slowdown you’ll find a grand pick of the litter. While other buyers hibernate, you can capitalize as the winter wonderland unfolds a dream home before you.
Bank of Canada Holds Rate Steady
To stimulate the economy the Bank of Canada tends to hold the overnight rate steady in the early winter. It happened at the end of 2018, and that peppered with a drop in the bond yield, helped fuel a dramatic drop in the 5-year fixed mortgage rate. So what about this year? On October 30 (2019) the BoC once again held the rate steady, and they are not going to raise it before 2020. That will mark an entire year of not moving the prime rate. So when we’re talking about buyer opportunity in the early winter of this annum, it simply doesn’t get much better. Experts are predicting that the BoC will have little choice but to raise the rate in 2020, most likely at the onset of spring. That makes this early winter prime time to buy before those fixed mortgage rates rise.
You Get to See a Home at It’s Most Vulnerable
When you view a home in the spring or summer everything appears fine and dandy. The house is being showcased in its best literal light, temperatures are balmy, and the birds chirping in the backyard seem to sing the praises of the property and invite you to become the new owner. It lulls buyers into submission. But when the winter rolls around the house shows its true colors, and at that point it’s too late to rethink the purchase. That’s why winter is a great time to view homes. For one, you’ll get a better idea of how the home exterior holds up to harsh weather, taking note of sagging gutters and more. The same is true of the interior, as you’ll be able to better gauge how the HVAC system (furnace, hot water heaters, etc.) functions and whether or not there are drastic changes in temperature and comfort from one room to the next. Especially cold days will also let you test faucets and feel exposed pipes to see if they are near freezing (and therefore fracture). Winnipeg winters test the constitution of homes, so it simply makes sense to make your inspections (and decisions) during the season.
Ready to talk about a mortgage at this most wonderful time (for buyers!) of the year? Contact Ron Chan today.
