Today, Jan. 20, might be the best day for a would-be home buyer in the Toronto area to get a deal on a house, real estate website TheRedPin.com says.
Rokham Fard, co-founder of the site, said his company looked at data from home sales in the Greater Toronto Area for the last five years and noticed a trend.
It's a well known adage of housing that home sales are smaller in number in January, due largely to cold weather and a sluggish start to the year after the holidays. But Fard said his company has noticed that activity tends to pick up in the third week of the month. Moreover, across the year as a whole, for whatever reason, Tuesdays are the most popular day for real estate activity — everything from new listings, to activity on websites, to actual sales themselves.
When the site added up all the factors, they came up with an eye-opening figure: a buyer could save as much as $22,000 if they bought a home on this day, compared to any other day.
Technically, the site only looked at data on sales in the Toronto area. But Fard said there's probably a lesson in there for buyers elsewhere in the country.
"I honestly think so," he said in an interview. "We only looked at GTA, but because that's 25 per cent of transactions across Canada, it's a big enough sample size to suggest it can be extrapolated."
Fard admits that for most buyers, if they haven't already started the process, it's certainly too late now to take advantage of any sort of leg up for buyers. "Buying a home is not like buying a sweater — you can't go in on the day of and buy a property. You can't rush it."
But he said the trend his company has unearthed could be a good lesson for anyone next year. "Generally, if you are looking for a better deal, you probably want to start early in January so you can close in the third week," he said.
May is good for sellers
And while he won't tip his hand with specifics just yet, Fard did offer a spoiler for how sellers can maximize their profit. "Best day to sell happens to be in May," Fard said. "It's the most expensive day of the year."
Fard won't give a specific day because he says his the company "hasn't delved too deeply" into that data yet.
But with an average selling price of $461,761 in January in the last five years, compared with $515,256 in May, it's certainly worth a thought come spring.