Buying a house is one of the most important decisions a family can make because it affects their foreseeable future. For many people, it is the most significant expense, for which they save money years in advance. For this and other reasons, this decision has to be carefully thought out. You need to answer many questions, starting with: when is the best time of year to buy a house?
You don’t want to make the mistake of entering the buying journey when the prices and competition are the highest because you will get frustrated in no time. Of course, the perfect time to buy a property will mostly depend on your financial situation and motivation, but there are still home buying seasons that will be more favorable for you than others.
To help you out, we made a comprehensive guide to home buying seasons to answer when the best time of year to buy a house is.
Not everybody is equipped with knowledge about real estate trends, and not everyone has to be. Still, you should get familiar with the market you are about to enter. Market awareness will help you create reasonable expectations and prepare you for some situations that would otherwise be unpredictable.
Find out what is the average rate on a loan you are interested in and find out how much is the median price in your local housing market. With these numbers, you would be able to calculate your potential monthly mortgage payment.
When is the best time of year to buy a house if that year marks high prices and low supply? If you hear people say that it is a seller’s market, prepare for bidding wars, low inventory, and overpriced properties. In this context, it is imperative to wonder: When should I buy a house - because it could save you thousands of dollars.
On the other hand, a favorable market would be called a buyer’s market, explaining the situation when the competition is low, and houses are affordable. However, the seller’s market usually has lower mortgage rates, so although properties are more expensive, homeowning can be easier to maintain with lower interest on monthly payments.
Ask a seller - when is the best time of year to buy a house? - and they would tell you that it’s spring. Spring marks many new listings because many people move once school is done so they wish to be set. Another reason why many people decide to list it during spring is because they can hide all the unwelcome issues: heating and insulation problems, leaks, and other cold weather-related issues.
These reasons make up for a market with higher inventory, but it brings more challenges. Try to understand whether you care more about the prices or choices while asking yourself when is the best time of year to buy a house. Because you will have a lot of properties to choose from during the spring season, one of them will most likely be your dream home. However, buying a house in the spring means there’s more of a chance to face a bidding war than in any other season.
Entering the market in the spring will make the most sense for people looking to relocate. Kids are about to finish school, and having a summer to get acquainted with the new neighborhood is very important for families with kids. Additionally, spring brings good weather, which motivates potential buyers to go on a house hunt.
The summer season is not the same in every local real estate market, as it highly depends on the weather conditions in the area. Some places in the US can get humid and hot, and people lose spring motivation during those times.
Other places have a comfortable temperature that only aggravates the demand - people trying to relocate before school starts. Still, the demand will quiet down by the end of the summer, and there will still be listings left. Early September is the perfect time to buy a house because the prices are somewhat lower, but there are still places to choose from.
In the case of real estate, patience is rewarded because discounts come at the end of the summer months. The autumn season marks low prices and lower inventory; furthermore, fewer people are buying a place.
Buying a home during the autumn months may be a great idea if you are on a budget. Fall lacks the volume of inventory that spring and summer have, but it offers lower prices. First, the market will be full of places that couldn’t make the sale during spring and summer so the owners will discount it in despair.
Sometimes, listing a house during fall and winter can mean “I am in a hurry to sell this place”. The urgency of the sale can decrease the value of the house, and it is a great opportunity for you to save a couple of thousand dollars.
If you decide to start searching for a house during the autumn months, your real estate agent will deal with you with much more care and attention. We’re not saying that real estate agents don’t usually do their jobs properly, but they will just have more time for you when they don’t have five other potential clients.
If you wonder when is the best time of year to buy a house while you are on a budget - it will probably be winter. Winter is the peak holiday season for many American families. During this period, most people are less likely to make some big, life-changing decisions and high expenses.
This bodes well for you as the buyer because the demand is low, and the sellers who listed their properties will be eager to sell as soon as possible. Additionally, real estate agents will want to make money on their commission during the slow period, which will motivate them to work harder, negotiate, and find you the best deal.
The beginning of winter marks holidays and yearly taxes, both of which are stressful for a homeowner. During that time, some people realize that they cannot afford their house, and they list it for a lower price than they would in the spring. Since the home loses value with each day it spends on the market; they will be motivated to sell it as soon as possible.
Another reason why winter is the best time of year to buy a house is that you get to see the house in its worst condition during that harsh winter weather. As we stated before, spring tends to improve a property’s look, but winter does the opposite. Sellers will have a more challenging time hiding the imperfections during winter.
To answer the question of when is the best time of year to buy a house on a budget - winter, but more precisely, December. There are extreme price reductions in the housing market, and the loaning process is faster, so you get easier to the closing because other actors in the home buying process don’t have a busy schedule.
Your personal situation answers the question of when is the best time of year to buy a house better than we ever could. Are you in a favorable financial situation? How high is your credit score? Are you expecting any other significant expenses in the near future? Can you afford to lose a huge chunk of your monthly income and still function normally? These are all important questions to ask yourself before entering the market.
Explore other hidden costs of being a homeowner, because some reports show that there are around $9,000 collected in annual hidden homeowning costs. Prepare to have emergency money for house repairs and maintenance. If you have all of this figured out, only then can you say that you are ready to start househunting.
The worst time to sell a house would be the exact opposite of the best time to buy a house. The sellers should usually avoid winter because fewer people are on the market, especially families with children. Winter is when your listing could be taken as “urgent” and desperate, discouraging buyers from competing for a higher price.
However, with SleeveUp Homes, there is no wrong time to sell a house. Some would say that listing a property during the winter could make it stale once people come back from holiday vacations prepared to buy. We will buy your house for top-dollar, as is - winter or summer, raining or snowing. No need to worry; just contact us and request a cash offer, no strings attached.
If you want to sell fast and are worried about how long the traditional process takes, and the commission and fees involved, consider working with SleeveUp Homes.