Ask a real estate agent about the best time to buy a home, the answer will inevitably be “Now!”
Why? Because prices are about to go up. They always are “about to” go up.
Interestingly, when it comes to selling your home, you’ll get a slightly different response to a question about timing. Maybe the market is soft and you should lower your asking price. Maybe you just missed your window to sell.
So, which is it? The truth may seem complicated, and it can be, because it depends on the real estate market, the time of year, the region, the area you’re buying in, and, of course, the home.
Buy when no one else goes shopping
The month of December is the ideal time The Best Time To Buy A Home. Sellers leave the market in droves when the holiday season comes around. Nobody wants to organize their lives around showings when they’re busy preparing for out-of-town family visitors or travelling.
If you’re a buyer, you know that someone marketing their home during the holidays is highly motivated. In other words, they’re probably more willing to take a lower price, flexible buyer terms, or work on a condensed or extended closing schedule.
Buy during traditional “season”
That would be through August in most markets. Why? Because families want to live in a specific neighbourhood for the schools. This time period usually has the most selection. So while you may find an excellent selection, you’ll also find the most buyers and highest prices. For a better deal, try shopping for a new home when school is in session.
Avoid the “mistake” season
That would be March and April, some say. This period is when people are out shopping around and not necessarily going to buy. Additionally its the season of mistakes, when lenders and title companies are busy. Loan processing takes longer. Mistakes could happen. Also, you could run into pointless bidding wars, which drive up the prices.
Mind the mortgage market
You should also pay attention to interest rates. We never know where rates will be in the future, or where prices will be, or what loan programs will be available. Some borrowers wait and then with rising prices and rates, they no longer qualify for the home and loan program they were interested in. So it is important to take advantage of the mortgage market when you qualify.
You can play the real estate market by waiting until January to buy a house, but the best time to buy is when you’re ready.
When you have saved enough money for your down payment and closing costs, have good credit, a great realtor, are secure in your job income, and are ready for the commitment of homeownership.