Wednesday, March 26, 2014

Real Estate fluctuations Cyclical and Seasonal Price Trends and Graphs in Toronto and Mississauga

Question from a reader:
One question regarding the cyclical pricing.. it looks from your graph http://www.mississauga4sale.com/avgprice1995todate.jpg that the peak is typically in the April or May months. Can you tell me whether that represents closing date, conditional sale date, listing date or something else? Trying to strategize our sale timing since we're a bit flexible.

Answer:

The peak of the market price is typically between the months of April and May of each year. This represents the sale price reported on TREB for that particular month. It does not account for conditional sales or the closing date, only the firm sale price that occurred during that particular month.

If, for example, a conditional sale was put together on April 5 and firmed up April 12th, the sale price would go towards April average.

 If a conditional sale was put together on April 25 and firmed up May 3rd, the sale price would go towards May average.

Best time to list is typically a week or two after the March break, then it takes 1-3 weeks to sell and you would sell at or near maximum and close typically about 3 months later. Most people like to close end of June or end of July due to children finishing school, and since most closings are between 60-90 days, this is another major reason that contributes to the March, April and May peak selling period.

Beware of the current cycle and where we currently are:

http://www.mississauga4sale.com/Market-Emotions-Cycle.htm

Please let me know if you have other questions.

Thank you,

Mark


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