Pros and Cons of Buying a Home in Late Fall: Is It the Right Time for You?

The late fall season isn't typically the first choice for homebuyers; however, as the real estate landscape in Halifax changes, so do the advantages and challenges of buying during this time of year. As your REALTOR® with The Agency Real Estate Brokerage, I aim to provide a comprehensive view of the current market and what this season could mean for your buying (and possibly selling) experience.

Market Update: A Unique Fall Market in Halifax

This fall, we've experienced a slightly unusual trend. After a slow start, the recent 0.05% interest rate drop by the Bank of Canada has re-energized buyers and sellers alike. With an uptick in buyer activity, some properties are receiving ten or more offers—a rare phenomenon for the fall market. Typically, real estate activity slows down as the year draws to a close, but this year, lower interest rates could keep the momentum going into winter.

With home prices expected to rise, many experts suggest that now might be the right time to start looking, even if fall or winter isn’t your usual go-to. Waiting until the spring could mean competing in an even hotter market, so let’s dive into some specific pros and cons to help you decide if buying a home in late fall is a good fit for your goals.

Pros of Buying in Late Fall

1. More Options and Extended Time on Market

   • As we transition from summer, more properties tend to stay on the market longer in the fall, especially as people look to complete their sales before the holidays. This means that buyers like you have a greater variety to choose from and more time to explore different options without feeling pressured by a rapid market turnover. This slower pace can give you a chance to look at more properties and find the right one that matches your needs.

2. Greater Negotiation Power

   • Compared to the bustling spring market, the fall season can offer more flexibility in negotiations. Sellers are often motivated to close deals before the year ends, giving buyers an opportunity to negotiate better terms or ask for closing cost assistance. You may find that sellers are more open to concessions or adjustments that benefit your buying power and budget.

3. Preparing for Potential Winter Gains

   • As we’re seeing an uptick in activity this fall, this winter may carry more buying and selling activity than usual. Buyers who act now are positioning themselves to benefit from possible home price increases expected in the coming months. Getting a jump start could save you from increased competition and potentially higher prices in the spring. In Nova Scotia, for example, the average home price rose by 5% to $423,664 as of April 2024, demonstrating the typical spring surge in pricing. Purchasing now, before the seasonal price increase, could help you secure a property at a more favourable price.

Cons of Buying in Late Fall

1. Tight Timeline Before the Holidays

   • Buying a home in late fall can come with a time crunch, especially if you hope to settle in before the holiday season. With less time for packing, moving, and getting settled, it can be a busier period than other times of the year. Plus, if your goal is to be fully moved in before the holidays, you may find yourself managing multiple obligations in a relatively short window.

2. Risk of Lower Selling Price for Your Current Home

   • If you need to sell your current home to buy a new one, the timing could impact your profit. Typically, homes that hit the market in late fall or winter sell for slightly less due to decreased demand. So, while the timing is good for buying, selling might not yield the highest return. For sellers who don’t absolutely need to move immediately, it could be worth waiting for the spring market if possible.

Preparing for a Potentially Active Winter Market

This fall’s unusual activity and the recent interest rate drop hint at the possibility of a busier-than-normal winter market. If interest rates continue to decline as anticipated, Halifax buyers and sellers could see a market that stays active through the colder months. With home prices likely to rise, this makes late fall a prime time to begin your home-buying journey rather than waiting for the rush of spring.

If you're contemplating buying a home before year-end, consider reaching out for a personalized market consultation. I can help you assess properties currently on the market, discuss negotiating strategies, and even explore if this is the right moment to sell if you're also considering a move. Remember, as with any investment, timing is everything—and this season may offer a unique opportunity to secure a home in a changing market.