Back to School Real Estate Update!

The Bank of Canada just dropped the prime rate again by another 0.25%. This will take the rate from the 5% we started the year at to 4.25%. What hasn’t happened because of these rate reductions…Buyers have not rushed back to the market and we haven’t seen a spike in sales or prices. Why? Just because the inflation rate and interest rates have dropped doesn’t mean the prices for groceries, gas, cars, etc have come down. Things are still more expensive for everyone than it was 2 or 3 years ago.

Properties are still selling, Buyers are still there but they are more price sensitive. The reduction in interest rates won’t fix the wrong price. It just won’t.

If you are a seller what you need to know about the ‘Fall’ markets is that it is very short. If a normal closing timeline is 60 days and if most Buyers want to be into their new home before Christmas that means a Dec 15th closing date means a sale date of Oct 15th. That right the ‘Fall’ market is really from now until, at best, Halloween. The busiest time is now until Thanksgiving. There are still sales in November but as we get closer to Christmas the less and less Buyers are out there actively looking to buy.

Now from a Buyers point of view, how does the ‘Back to School’ season impact them.

Many families find themselves balancing the excitement of a new school year with the demands of finding a new home. This time of year can significantly influence the real estate market, affecting everything from inventory levels to home prices. Here’s what homebuyers and Sellers need to know about navigating the housing market during the back-to-school season.

1. The Seasonal Shift in Market Activity

The back-to-school season often marks a shift in the real estate market. Traditionally, the spring and early summer months are the peak period for home buying and selling, with families aiming to move before the new school year begins. As September approaches, the market can experience a slowdown, with fewer new listings and reduced competition among buyers. This slowdown can be advantageous for buyers who missed the summer rush, as it may offer a chance to find a good deal and avoid bidding wars.

2. The Impact of School Proximity

For families with school-age children, proximity to quality schools is a top priority. Homes located near highly-rated schools or in desirable school districts often hold their value better and are in higher demand. When searching for a home, consider the distance from potential schools and evaluate school ratings and reviews. A good school district can enhance your family’s quality of life and even influence future property values.

3. Adjusting Your Home Search Criteria

With school back in session, homebuyers might need to adjust their search criteria to accommodate their family’s new routines. Focus on properties with designated study areas, quiet locations, and proximity to extracurricular activities. If you’re a parent, prioritize homes that offer easy access to schools and activities, which can simplify daily commutes and reduce stress.

4. The Influence of School Calendar on Closing Dates

The back-to-school season can also impact closing dates. Families often prefer to complete their home purchase and move before school starts to avoid disrupting their children’s education. If you’re buying a home during this period, be prepared for potential delays in closing due to the increased demand for moving services and the need for coordination with school schedules.

5. Negotiation Leverage

As the summer rush fades, buyers may find themselves with more negotiation power. Sellers who are still on the market during the back-to-school season may be more motivated to close deals quickly. Use this to your advantage by making competitive offers and negotiating favorable terms. The fewer number of buyers and sellers in the market can give you an edge in securing a great deal. SELLERS: If the normal closing date is 60 days away Oct 15th sale date means closing Dec 15th. Most Buyers want to be in their new home before Christmas. So once you get past Halloween the market activity really drops and won’t really pick up again until well into the new year.

6. Market Insights and Trends

Keep an eye on local real estate trends specific to the back-to-school season. Market conditions can vary significantly by region, so understanding local trends can provide valuable insights into pricing, inventory, and competition. Work with a knowledgeable real estate agent (I know a good one 😊) who can guide you through the nuances of your local market.

7. Preparing for a Smooth Transition

If you’re moving during the school year, plan ahead to ensure a smooth transition for your children. Communicate with their new school about enrollment, transportation, and any support services available. Make an effort to integrate into your new community and connect with local resources to help your family settle in comfortably.

The back-to-school season presents unique opportunities and challenges for homebuyers. By understanding the impact of this time of year on the real estate market and adjusting your home search criteria accordingly, you can navigate the buying process more effectively. Whether you’re looking for a new home to better suit your family’s needs or seeking the best deal in a quieter market, the back-to-school season can be a strategic time to make your move.

Back to School and Real Estate Update