The best time to buy a house will depend on your geographical location, budget, and overall financial situation. While there are numerous times to buy a home throughout the year, seasonality will factor into the availability of houses in the market. We broke down each season to compare housing inventory and additional factors that affect buying your dream home.
When Is The Best Time of Year To Buy A Home?
While it will vary per geographical location, the early months of December and January tend to have the lowest housing inventory on the market. With so many individuals and families busy with the holiday season or on vacation, there are more desirable times to sell and buy a home than these two months. The limited housing inventory creates an inopportune time for homebuyers interested in purchasing a new home. However, there is a silver lining for buyers during these early winter months. The sellers who decide to place their home on the market during these two months generally are forced to sell due to external life factors such as relocating, health issues, downsizing, or divorce. As a result, they may be more inclined to accept an offer, which can work toward the homebuyer’s advantage.
Later in the winter months of February and early March, the housing inventory will slowly increase. So for buyers looking to move, the late winter is a great time to get pre-approved and prepared for the busy house-hunting season ahead.
Green grass, warm weather, and countless houses for sale are a welcomed change moving into the spring months. As more houses are listed on the market during late March, April, and May, buyers and competition also increase. Springtime is a great time to buy a home, regardless of your location. However, as mentioned, competition increases simultaneously and will play a factor in securing your dream home. A desirable home may receive multiple offers, resulting in a bidding war that will jack up the housing price. Don’t lose hope, if you plan to buy a home in the spring it’s helpful to be prepared with extra cash to negotiate or to dig your heels in on your budget.
If you have small children or a growing family, the springtime may be challenging to navigate house hunting and ultimately moving while your children are in school. In that case, summertime might be a better time to buy a home for younger families. Like spring, housing inventory will increase throughout June, July, and August. Moving in the summer months works for the seller’s and homebuyers’ benefit, so keep a watchful eye on the real estate listings in your area, and don’t hesitate to put in an offer.
May to August tends to be the peak season in the real estate world, so if you are shopping for a home during the summer months, be prepared for some vigorous bidding competition. Even if you put in an offer on your dream home, it’s not guaranteed you’ll get the home. Some homebuyers may have to increase their bid or risk losing the house . Don’t forget, even though summer may be the most competitive time to buy a home, it also has the most homes on the market and therefore, the most opportunities to get your dream home!
As the leaves start to fall, the housing market will begin to dwindle to a more limited housing supply again. For homebuyers that are looking for a home to make their own or are flexible with a floorplan, location, and style of home, the limited housing market may work in your favor. However, homeowners that want specific expectations or requirements may need help finding their dream home during the fall as there are not as many houses to choose from.
Factors Affecting Affordability
Numerous factors will impact when to buy a house. The first and most important is mortgage rates. During the past couple of years, mortgage rates have been significantly low, boosting the housing market. However, mortgage rates have been slowly creeping back up in recent months, effectively slowing the home buying market.
Two other factors to consider are home prices and income. With so many individuals relocating and working remotely, the housing market has seen tremendous growth and with it, increased home prices. Homes for sale in a desirable neighborhood or community will experience inflated prices, and some homebuyers are willing to foot the bill. When it comes to a competitive bidding war, first-time home buyers may experience challenges securing their dream home. In addition, income and debt ratios play a significant role when applying for a loan.
Life At Lakeside
If you’re ready to find your dream home and make a move, then contact Lakeside at Tessera. With three of the best home model options, Highland Homes, Lennar Homes, and Coventry Homes, we can help you construct the home of your dreams regardless of the season. Schedule a tour today!