When is the Best Time to Buy a Home?
If becoming a home owner is on your lifetime to-do list you may be wondering… When is the best time to buy a home? There are pros and cons of buying a home in each season of the year. This article will help you compare the benefits of each season. We will also provide some resources to inform your personal financial factors that determine when the best time to buy a home is for you and your family.
Each season of the year has a trend in the housing market. The weather, holidays, school year, and market conditions can have an effect on your home buying experience.
Winter Housing Market Trends
Number of Homes for Sale: Low
Number of Buyers in the Market: Low
Motivation of Sellers: Low to High
The winter months are historically the slowest time for real estate transactions. It could be the cooler weather, approaching income tax season, or the middle of the school year that makes it an unattractive time to make a housing change.
Low numbers of buyers could be an advantage to a prospective buyer if you are looking to avoid competition. It could also be a disadvantage if the inventory of potential homes are low. Sellers who are changing jobs during the winter and need to sell quickly my be motivated to sell at a lower price if it means closing the deal sooner. On the other hand, a house that is listed above market value and hasn’t sold, may still be there because the seller is not in a hurry to sell.
Winter could be the best time to buy a home if you are looking for a perfect match and you are willing to be patient in finding the right fit.
Spring Housing Market Trends
Number of Homes for Sale: Medium to High
Number of Buyers in the Market: Medium to High
Motivation of Sellers: Low
Heating up in the Spring, more homes are listed on the market. More buyers will also begin to look for new homes in the Spring, especially if their goal is to move at the end of the school year.
Sellers expect a few weeks or months to pass by before closing. This could mean that they list the home at a higher price in the Spring and hope that the Summer competition to buy will earn them the higher asking price. Other sellers may be motivated to sell before the Summer real estate traffic begins.
Spring could be the best time to buy a home if you want to avoid the Summer competition.
Summer Housing Market Trends
Number of Homes for Sale: High
Number of Buyers in the Market: High
Motivation of Sellers: Low to High
The busy season for home buying is June, July, and August. The Summer months have the most home listings, but also the most buyers. Realtors, appraisers, home inspectors, and other home service providers are booked. This means that you will need to be prepared to make timely decisions.
Sellers can be motivated to shake hands on a deal before the school year starts back up. Alternatively, they may also be willing to wait for a higher offer, relying on the competitive nature of peak home buying season.
With lots of homes to choose from, Summer could be the best time to buy a home if you are prepared and ready to compete for the best homes on the market.
Fall Housing Market Trends
Number of Homes for Sale: Medium to Low
Number of Buyers in the Market: Medium to Low
Motivation of Sellers: High (Usually)
The inventory of homes in the Fall can vary. However the number of potential buyers also drop as the school year begins and families prepare for the holiday season ahead.
Thanksgiving leftovers aren’t the only Fall leftovers you can look forward to. Sellers that weren’t able to sell their homes in the Summer time, may be willing to lower the asking price and sell their home before the holidays.
Fall could be the best time to buy a home if you are looking for a deal and don’t mind moving in close to the holiday season.
All things considered your personal finances and goals may be the determining factor in deciding the best time to buy a home for you. No matter the season, you should be prepared to buy before you start shopping.
Here are a few articles that will help you get started:
