How Do You Know When The Best Time To Buy A House Is?
Posted on: 9 January 2019
You may have been thinking or planning to buy a new home for a while. You have been saving and perhaps doing a bit of research on new homes for sale in your area. You could be wondering is this the right time to buy a home? When is the best time of year to make that purchase?
How do you know when the best time to buy a house is? There are a few factors to consider that can make your purchase a bit easier.
The Time Of Year Can Make A Difference
While homes are for sale at any time of the year, there are certain months and seasons that seem to do better than others. In fact, it might not be the season you think. Fall and winter are typically the best times to go house hunting.
The fall and winter months are filled with the holidays, which more people are focused on instead of home buying. This means less competition for houses than during the spring or summer months. In the colder months, buying tends to slow down, especially in areas that receive a lot of snow or get colder than others.
In either case, your competition usually isn't around to outbid you on the home of your dreams. As a result, you might find that home prices are a bit lower in the fall and winter as well. A house that has been sitting on the market for some time might see a seller lower the original asking price to gain interest. It's also possible to find sellers who are willing to negotiate on price during the winter months.
Interest Rates Play A Part
Interest rates rarely stay at the same level for years at a time. They fluctuate up and down the scale over the course of the year. If you keep an eye on those rates, you could get a mortgage at a lower rate at certain times during the year than at others. Then you will pay less on your mortgage for the duration it is locked into.
A Seller's Market Or a Buyer's Market
Another determining factor on when to buy a new home is whether it's a seller's market or a buyer's market at the moment. If it's a seller's market, there aren't many homes as competition to the seller on the market in that area of comparable value. This means, they could ask for a higher price and will most likely receive multiple bids on the property.
A buyer's market is when there are many homes on the market in the same price range and around the same size. This abundance of competition could mean lower home prices and buyers who could be willing to negotiate with you. You might also get a flexible closing date as a result.
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