When is the best time of the year to buy a house? That’s one of the most vital questions to answer once you’ve made up your mind about owning your dream home. While the perfect timing for a home purchase depends on many factors, including your preferences, your budget tends to override many considerations.
Therefore, it helps to accurately track or predict the varied home prices over different seasons or periods of the year. And with comprehensive price research, it’ll be much easier for you to find an ideal house that matches your budget.
Read on to discover the best time of year to buy a house:
Take advantage of less competition and lower prices during autumn and winter
Autumn and winter may not be the busiest seasons in real estate, but they’re usually the best time to buy a house, no matter where you live in the US. There are two main reasons for this:
1. Less competition:
There are generally fewer people on the property market when it’s pretty cold out there. So, when you go house hunting during autumn or winter, you’ll face less competition. That translates to a lower likelihood of encountering multiple offers on a property that interests you.
2. Lower prices:
If you wanted to sell your current home, conventional real estate wisdom would probably have you list the property in the spring or summer. You’d most likely fetch a reasonable price for it due to the many buyers looking to buy at that time. But if circumstances forced you to sell the same property in the same condition during winter, the opposite would be correct. That’s why you should consider buying in winter or autumn, when house prices may fall by about 8.45%, according to a NerdWallet report.
The best time to buy a house is when target property market prices are favorable
Where do you wish to buy your next home? Be sure to study the property market of interest because its pricing trends may not necessarily move in tandem with nationwide patterns. It’s in your best interest to take into account any significant local market deviations that may impact value for money.
Consider an area like southern California where property prices are not substantially impacted by weather throughout the year. If you’re prioritizing affordable pricing here, any time of the year should be perfect to buy a house in that part of California. Or if you want to buy a house from a place known for winter vacations, housing prices may increase before the busy season.
Don’t forget to consult a local realtor for deeper insights into specific factors affecting local property prices. It would also help to pinpoint influential real estate dynamics that are not unique to any season. These could be things like bad economic times and overbuilt markets. On the contrary, a neighborhood that’s becoming more desirable can fetch higher prices.
Get up-to-date home pricing statistics
It’s a good idea to get a general feel of the direction in which pricing trends in your target market are heading. This knowledge puts you in a better position to select the right timing to buy a home at a reasonable cost.
For example, if you’re looking to get a better sense of how to negotiate on listed prices, take a look at the sale-to-list price ratio. Your interest here is to get a final price that’s as far below the asking price as possible. Typically, this ratio indicates as a percentage what the buyer paid for the home divided by the latest asking price.
A 106% sale-to-list ratio would mean that the home sold above its listing price. Anything below 100% indicates the exact opposite. Most real estate websites consistently feature such statistics to help you make informed purchase decisions.
With these tips by Andraya Coulter, finding the best time of the year to buy a house shouldn’t be too difficult. Be sure to contact us for any assistance regarding financing your mortgage once you’ve identified your next home.