When is the best time to buy a house?
The best time to buy a home depends on your needs. Certain seasons can give you an advantage when starting your homebuying journey.
Warmer seasons see more homes on the market, giving you a better chance at finding your dream house. If you are shopping on more of a budget, cooler months do not see as many buyers and a seller might be willing to accept a lower offer.
Regardless of when you are looking to buy a house, a mortgage pre-approval is the best way to prepare for the season.
Buying in spring
Looking for a new home in spring will give you tons of options as inventory tends to be at its highest, but spring can come with the highest competition.
March will see the beginning of the spring homebuying season. Sellers who waited through the winter will list their house in spring to show off a home’s curb appeal and exterior landscapes.
More homes on the market can mean more homebuyers shopping and fiercer competition. With more homebuyers shopping in the spring, it is common to have bidding wars and less room for negotiation.
Buying in summer
Shopping for a home in the summer can have the benefits of buying in both spring and fall. Some of the larger housing inventory of spring will carry over to the start of summer with fewer buyers on the market later in the season. Summer is still a strong time for competition and bidding wars, especially in good school districts as parents look to set up their children’s education for the following year.
Moves tend to be easier for families during the summer with kids on break from school. More people moving might mean a harder time finding movers to help, as 13% of all moves will happen during June, and 24% happen in July and August.
Buying in fall
House-hunting in fall will see a drop in both inventory and demand. While you might not see as many homes as you would have in the previous season, you also won’t see as much competition. Without as many other homebuyers looking, you can make lower offers and negotiate to your desired price.
If you find a home during the fall that meets your needs and has been up since spring, there is a chance the seller is willing to give you a better deal rather than wait until the following spring when there are more buyers again.
Buying in winter
Winter sees home inventory and demand regularly reach the lowest of the year, but it can be the best season for buyers looking for a home on a budget. Sellers could be more interested in lower offers since people don’t want to move in the cold and when there isn’t the same amount of interest.
With the low inventory, it might be harder to find the home of your dreams in winter. This season can also make it challenging to fully evaluate a home’s exterior, but you can get a good sense of a house’s heating capabilities and structural integrity.
Seasonality in home prices
In most locations, buyers can expect to spend more on homes during spring and summer seasons and can negotiate better deals during the colder months of fall and winter.
With more inventory and buyers looking for homes in the spring and summer, prepare for competing offers or to be outbid on a home. Fewer buyers and a smaller inventory during the fall and winter months mean that if you find a home you like, you could get a better deal.
Places that have a snowbird effect, where people look to relocate or buy second homes in warmer climates, will see another boost in home sales during the cooler months.
Preparing for your desired season
Whether you are hoping to see more homes in the spring and summer or are looking for a better deal in the fall and winter, there are a couple of things you can do to prepare for buying the home of your dreams.
Knowing the market
Depending on where you live, your housing market might not follow the standard seasonal trajectory.
Warmer places that see snowbirds will likely also see a second peak in home sales during cooler months. This can mean that places like Phoenix could have more people looking to buy a home in October. So, even though it is the fall, you might not get the same deal you were hoping for.
Personal situation
Regardless of the season, your financial situation will be the most important consideration when figuring out the best time to buy a home.
If your career is taking off or if your family is starting to grow, it may be the right time to consider buying a home. Before looking at homes, you will want to check interest rates on mortgages and budget how much you can spend on monthly payments without spreading yourself too thin. Saving up for a down payment is something you should do well before starting to shop, as a bigger down payment could mean a smaller loan.
If you find the house of your dreams within your price range, don’t wait for the right season to make an offer. It might no longer be on the market if you do.
Pre-approval
Getting pre-approved is a smart move, no matter what time of year you are looking to buy a home.
A pre-approval shows sellers how much you can afford to pay for a house and will show you your total home budget. If you are worried about someone outbidding you while waiting for your mortgage to get approved, a pre-approval can save you from that situation.
Pre-approvals can last up to six months, so you could use it for the entirety of your desired shopping season and then some.
If your desired shopping season is about to start, don’t wait until you find your dream home. Get pre-approved for a mortgage today!
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
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