Hey there, Today we're diving headfirst into how to get your home sold heading into the winter months. One question might be: "Can you sell a house in the middle of winter when everything's frozen?" Grab a warm beverage and settle in because we're about to explore this fascinating topic.
Do Houses Sell In The Winter?
Let's tackle the first question that's probably burning in your mind. Do houses sell in the winter, when the landscape is covered in snow (or, in our case, often rain), and everyone seems to be hiding indoors? The short answer is a resounding YES, and it might surprise you just how well they can sell during this season.
In Canada, we're no strangers to harsh winters. Although real estate activity does tend to slow down over the winter season, the real estate market doesn't entirely freeze for sellers when temperatures drop. Here's why:
Less Competition:
One of the most significant advantages of selling your home in the winter is the reduced competition. Many sellers wait until the warmer months, believing spring and summer are the ideal times to trade. While there is some truth to this, that isn’t the whole story. Despite the advantages of selling during Spring/Summer, the scarcity of available properties in the winter can also work to your advantage. There's indeed less demand in this season, but this is largely balanced by the fact that there's also limited supply. As many buyers don't want the hassle of selling and moving over the winter months, that goes double for sellers. It can be a lot of work to show your home and keep it constantly staged and presentable for showings, especially as we head into Christmas and the holiday season. As a result, many listings drop like flies between the end of September and the beginning of December. Many of these owners plan to cancel their listing sometime between October and early December and plan to relist in the spring.
Serious Buyers:
Picture this: you're house-hunting in the middle of January, battling freezing temperatures and slippery sidewalks. You're not doing it for fun; you're serious about finding your new home. That's precisely the kind of buyer you can attract in the winter – motivated and ready to move. This could be someone motivated to be in their new home, possibly because they are trying to beat the market pressure or perhaps because they need to meet a critical timeline. When it comes to timelines, home buyers can often feel the pressure to find a place when they are both selling and buying. If they've sold their home already, they might have a narrow time window to find a place so they have somewhere to go before they are out of a home. Alternatively, sometimes a seller will accept an offer that's subject to finding their new home before a set date. In this case, the buyer may be under the gun to find a home that will work for them to ensure their current accepted offer doesn't collapse. Outside of selling and buying, buyers could also be under a time constraint if they plan to relocate to a new city. Nobody wants to move twice if they plan to relocate permanently. That's double the work! Plus, in a city like Victoria, where rental vacancy is low, it can be difficult to find a nice place to rent for a decent price in the first place. For buyers relocating from out of town, sometimes every second counts, and that can drive some buyers to do whatever it takes to get into their new home before the clock runs out.
Holiday Charm:
The holiday season adds a unique charm to homes on the market. Houses adorned with twinkling lights, festive decorations, and the inviting scent of freshly baked cookies can create an emotional connection with potential buyers. With the right holiday decorations, a well-staged winter home can get buyers dreaming about all the wonderful family time they will enjoy with their families during this magical time of the year.
Cozy Appeal:
Winter might be cold, but it's also the season of coziness. A warm fireplace, soft blankets, and a steaming cup of cocoa can make your home feel irresistibly inviting. If your house has a cozy charm, this is one aspect you can play up during the holiday season.
Reasons To Sell This Winter
Now that we know houses sell in the winter let's explore why you might consider moving during the colder months.
1. Less Stressful Timing:
Buyers house-hunting in the winter often do so because they need a new home sooner rather than later. This can lead to quicker closing times and a smoother transition if you hope to sell your place right away. Alternatively, you'll also encounter buyers who are simply serious about finding their new home, pushing them to diligently look for a new home even during the winter months. This could be an emotional drive to find the right place now or a time-sensitive need to find something by early in the new year. Either way, these buyers often have stronger motivations and a greater willingness to be flexible to make a purchase happen.
3. Market Supply and Demand:
In some areas, winter is the peak buying season. This is especially true in locations where people relocate due to job changes, regardless of the weather. Unfortunately, that is not the case on Vancouver Island. However, demand and supply tend to follow the same trends locally as we head toward winter, with December being the lowest point in the year for listings. So, although demand is much lower, so too is supply.
Although we all know that the winter season runs from December 21st until March 20th in the following year, there is a unique variation for realtors. For many realtors, we treat January 1st as the opening day of the Spring market. Although this isn't seasonally accurate, it highlights a common seasonal trend in the table below. The fall/Winter market tends to decline from September until December, when it bottoms out. Then it picks up again in January and continues to lift until around May or June, when it flattens out over the Summer months.
These seasonal trends tell us two things. First, if you're still listed in December, everyone knows you shouldn't expect a lot of demand. However, as mentioned before, you're also not up against a lot of competition. So, your home is likely to be one of the few homes still on the market for those buyers who are still actively looking. Second, If you plan to list in the Spring market, you won't want to wait until Spring starts (i.e., March 20th). Instead, if possible, plan to get listed in January, the beginning of what many realtors consider the 'Spring' market. This will help your home to stand out against the onslaught of increasing inventory as other sellers continue to list their homes between January and May/June. You don't want your home listed in March/April once there's already a lot of other competition on the market. You want your home to be one of the first market listings in the Spring market so you're not competing against too many other options.
2. Tax Benefits:
Depending on your specific situation, closing the deal before the end of the year might have potential tax benefits. This usually won't matter for people selling their principal residence since these sellers are usually exempt from capital gains tax. However, it may be important if you own a rental property and you're considering when would be best to realize a gain from the sale of your investment property (i.e., this year or next). Additionally, if you own an investment property through a holding company or you operate a business that pays taxes on a fiscal year-end different from the calendar year (i.e., March 31st), then tax considerations can become important. It's also worth noting that tax implications can often make it worthwhile to delay and defer capital gains into a future year. The Federal and Provincial anti-flipping taxes are perfect examples of reasons you may want to sell later instead of sooner. If you haven't owned an investment property for longer than the 1-year federal anti-flipping tax and the 2-year provincial anti-flipping tax, then you could be subject to paying additional taxes that could have been avoided by delaying your property sale. Regarding real estate tax implications, it's always a good idea to consult a tax professional for advice, especially in more complex situations involving things like investment properties, holding companies, or business taxes.
Tips For Selling Your Home In The Winter
Alright, let's get practical. You've decided to brave the winter real estate market; how do you make it work? Here are some essential tips:
1. Clear the Path:
Snow and ice can be significant turn-offs for potential buyers. Keep your driveway, walkways, and front steps clear of snow and ice. A well-shoveled path to your front door ensures safety and leaves a positive impression. Fortunately, snow and ice are rare and fleeting commodities in our part of the world. Still, it is good to be prepared to clear snow and ice when it does land on your property, especially if you live on a mountain or steep hillside where the snow tends to arrive sooner and last longer.
2. Let There Be Light:
Winter days are shorter, which means less natural light. Maximize the available light by opening blinds and curtains wide during showings and turning on all interior lights. Additional light is really important in the winter months when daylight hours are shorter and tend to be more gloomy. Consider investing in additional lighting, such as floor or table lamps, to brighten dim areas.
3. Keep It Cozy:
When buyers step inside, your home should feel warm and welcoming. Set the thermostat at a comfortable temperature, ensuring every room feels cozy. If you have a fireplace, consider lighting a fire—it creates an inviting ambiance.
4. Mind the Decor:
While holiday decorations can add a festive touch, striking the right balance is essential. Keep your decor tasteful and relatively neutral to appeal to a broader range of potential buyers.
5. Professional Photos:
High-quality photographs are essential in any season, but they're especially essential in the winter when your home's exterior might not be at its most photogenic. Hire a professional photographer who can capture the warmth and charm of your home's interior.
Pros & Cons Of Selling Your Home In The Winter
Now that you know how to sell your home in the winter, let's summarize the main pros and cons.
Pros:
1. Less Competition:
A smaller inventory of homes on the market can lead to increased attention and better negotiations.
2. Motivated Buyers:
Winter buyers are often motivated by life changes like job relocation, marriage, or growing families. These motivated buyers are more likely to move forward quickly with a purchase.
3. Tax Benefits:
Selling before the end of the year could offer tax advantages, depending on your situation. Consult a tax professional for guidance.
Cons:
1. Weather Woes:
Winter weather can be unpredictable, leading to challenges like snow removal and icy conditions. These inconveniences can make showing your home more complicated.
2. Curb Appeal Challenges:
The exterior of your home might not look its best when it's covered in snow and ice, and it can be challenging to create that wow factor from the curb.
3. Limited Daylight:
With shorter days, scheduling showings during optimal daylight hours can be tricky, potentially reducing the number of prospective buyers who can view your property during the day.
Conclusion
In conclusion, selling your home in the winter is possible and can be a strategic move. By understanding the nuances of the winter real estate market, preparing your home thoughtfully, and using the tips we've discussed, you can set yourself up for success.
Remember, this is your domain, and you have the power to make the sale happen, no matter the season. So, stay warm, stay motivated, and happy selling.
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I am a Victoria-based local realtor with eXp Realty. My commitment to honesty, integrity, loyalty, and hard work have been essential pillars for me because they drive a high standard of excellent service for my clients. Helping you realize your dream is my goal!
I service Vancouver Island, but my focus is on Victoria, Sooke, Saanich, Malahat, Shawnigan Lake, Cobble Hill, Duncan, and the rest of the Cowichan Valley.
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