The short answer is: “while you still have options available to you”. That is, while you have some degree of choice and control over the timing. The answer is closely related to the topic “Why downsize?”
The answer to the “when” question is very dependent on personal reasons and what you believe about the value of your home in the current market.
A. Personal Reasons for downsizing
As you stack downsizing reasons on top of each other, as in the simple diagram below, you start to get a sense of the strength of your own motivation to downsize. When all reasons are taken into account, you get a more realistic picture of your situation. The stacking sequencing and importance of these “blocks” will be different for each person. The foundation in this example is “Finances”. You may choose another reason as the foundation for your own situation.
B. Market Timing when downsizing
Of course, the ideal timing for downsizing by choice would be when you have strong personal reasons for downsizing combined with an increasing market value for your property. However, catching the maximum dollar value at that same time you have the strongest reasons is like timing the stock market. A very small number of sellers time it correctly but most don’t. Also, if you are downsizing by necessity, then you will most likely do so regardless of market timing and the value of your property.
The following bar chart shows the average sales price of detached homes in the Toronto (Canada) real estate market from January to July in 2017.
Q. Based on the above diagram and matching table, which month from January to July do you think was the best month to sell* a home?
*Assuming that “sell” means having a firm offer and buyer’s deposit.
For the surprising answer, click here. What was the best month to sell in 2017?
What are your thoughts on this topic? You are welcome to comment below …
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Unless otherwise credited, all posts are happily authored in quill & pen by …
Paul Ferri, Broker
RE/MAX Unique Inc. Brokerage*, Toronto, Canada
*Each office independently owned and operated