Have you been wondering when the best time of year is to buy a home? Several external factors determine the best time to invest in a property, whether it involves getting a mortgage or making an instant purchase. However, the most significant influence tends to be the yearly seasons of winter, spring, summer, and fall.
The social, economic, and political calendar of the United States operates based on the yearly seasons. Each of those factors directly or indirectly impacts the behavior of the housing market.
Other factors include individual readiness, the location of the home, and ongoing housing trends, including interest rates.
Despite the external shocks to the housing market, seasons remain a major driving factor in when to buy a home. Read on to learn more about the seasonal factors that affect housing prices.
Winter is the best time to buy a home since property prices tend to be lower. In addition, the housing market trend is usually at a low peak during this period. This is because the holiday season between Thanksgiving and the new year is assumed to have fewer buyers. As a result, sellers and Realtors are looking for a quick sale and are likely to negotiate at lower prices.
The downside to winter is the limited selection of available properties. In addition, housing amenities, such as natural lighting, are more challenging to determine during winter. Furthermore, home inspectors will have difficulty assessing the condition of the roof and air-conditioning system, features that come in handy during summer.
Despite some shortcomings, winter is an ideal time to buy a home. The listings are fewer, real estate agents are readily available, and home inspectors are not overwhelmed with work. Plus, housing prices are typically lower than the rest of the year.
Spring ushers in bidding wars. The real estate market is at its highest peak during this season. You’ll stumble across many housing options on sale, but the competition is equally high. As the temperatures get warmer and the school year ends, more buyers search for new homes.
Natural sunlight, flowers blooming, and grass greening often results in better curb appeal. Plus, sellers often increase their asking price as demand rises.
Furthermore, families have more time for house hunting before the new school year starts while enjoying the weather. However, it’s best to lock down a good deal before the bidding wars start.
The peak of the real estate market stagnates during summer. Homes are still expensive and open for listings. The upside of summer, however, is that if you’re in the market to sell your existing home and purchase a new one, this is the best time.
Housing prices begin to drop as summer comes to an end towards August, which is an excellent time to secure a good deal. Some properties languish in the market during summer and spring due to buyers backing out from sales. On the other hand, for buyers, places might be in good condition, proving to be an excellent find.
Overall, successful house hunting in the summer boils down to timing and location.
Sellers become motivated to sell during fall as the peak season ends. Fall offers buyers similar opportunities as winter to buy properties at lower prices.
During this time, families with children who have not purchased a home pause their hunt until next spring. However, the slow market motivates sellers, giving homebuyers a chance to purchase a home at a bargain price.
Desperation heightens in October for sellers with the approaching of the year’s end. Also, during this time, real estate agents have more time to spend with their clients, making fall a great time to shop for a home.
Each season offers a series of advantages and disadvantages regarding the real estate market. So, the best time of year to buy a home ultimately depends on your preference and purchasing power.