Best Time To Buy A House?
There are three main ways to determine the best time to purchase a home.:
Best month:
Even in a down market, there is always the best time to buy a home or the best season to purchase it.
Best year for the market and economy:
Market trends and the state of your local economy can all influence the best time to buy.
The best time to buy:
Market characteristics aside, it is essential that you plan to purchase when it makes financial sense and fits your moving timeline.
What Is The Best Time To Buy A House?
If you are looking for a great shopping experience, with plenty of inventory to choose from and the possibility to purchase a home that you love, late summer is the best time to buy a house. August is the best month to buy a house.
In general, fall and winter buyers will have fewer options but greater price flexibility, while spring and summer buyers will have more options but less negotiation power.
For A Lower Price, Buy In November
Because more buyers are looking for homes in spring, a home that you purchase between March and May may be more expensive than one purchased in November or December. However, buyers on a tight budget will find the best window between fall and winter.
Remember that fewer homes are available for sale during the winter months and around busy holidays, so there will be a smaller selection of homes for sale.
For More Options, Buy In April
The flip side is that spring and early summer are great times to purchase a house if you're looking for more options and are willing to pay a premium. April has the most recent listings.
Listings are usually on the market within a brief period between April and June. If you are looking to purchase in a market that experiences harsh winter weather, June and May typically have twice the number of active listings than January or December. This springtime pattern is less evident in temperate markets.
For Better Selection And Lower Prices, Buy In August
The same data set shows that August experiences the most significant price reductions, but inventory levels remain healthy. Prices fell the most between July and September 2016.
August is also the last month where there are the most listings nationwide. Between June and August, peak inventory occurs.
Is It A Good Idea To Buy A House In This Economy?
The housing market and your decision to purchase can be affected by both state and local factors. For example, the housing market can be affected by factors such as interest rates, job market, and overall economic health in the United States. In addition, local factors such as buyer demand, local job market, and the local rental market could affect your decision to purchase.
Low mortgage interest rates make homeownership more affordable and more accessible to more people. Therefore, even small rate increases, it is advantageous to shop rates. Here's an example.
As of September 2019, the average 30-year fixed-rate mortgage rate hovers around 3.8%. Let's assume you are looking to purchase a $300,000.00 home with 20% down ($60,000). A one-point rise in mortgage rates can mean that your monthly mortgage payment (not including taxes and insurance) could be more than $100 per month.
Your monthly mortgage payment (principal and interest) at 3.8% would be $1,118.
Your monthly mortgage payment (principal and interest) at 4.8% would be $1,259
If you can raise your down payment and avoid paying private mortgage insurance, lower interest rates may make it possible to buy more expensive homes. With a 3.8% interest rate, you can buy a house for $337,000 with a 20% downpayment ($67,400) and pay $1,256 per monthly. That's $3.00 more than buying a home for $300,000. The interest rate at 4.8% is higher.
Changes In The Local Market
When deciding when is the best time to buy a house, keep in mind that buying when home values are rising is always a good option. You will build equity right away. It is best to sell high and buy low. Although no one can predict the market, these factors could indicate a good time for you to buy and an eventual good return on your investment.
Real estate development is taking place in the region
Retail and restaurants are opening new locations
Population is growing
Consider Your Personal Circumstances When You Decide To Purchase A House
You could end up defaulting on your mortgage or losing your home to foreclosure if you buy a home before you are financially ready.
It is costly to be a homeowner. This includes taxes, insurance, and utility payments. However, it doesn't include landscaping or cleaning, which can add $3,021 per year.
A home that has not been maintained or updated may result in additional unexpected costs. This is especially true for the first few years or in cases where significant systems fail. While new construction is more expensive, there are fewer unexpected costs as everything is brand-new.
Remember that housing costs are just one aspect of your financial picture. If you are retired or have a low income, paying a mortgage and the associated expenses can be difficult.
Mental Preparedness Of The Buyer
It's not just about the money. You also need to be mentally ready to make the right decision when buying a house. A home is a change of lifestyle. You are responsible for all maintenance, repairs, and upgrades. This is a more difficult task than renting. Some people choose to stay renters. These responsibilities and the maintenance of your rental property fall on the landlord.
Possible Relocation
It's not a wise decision to buy if you plan to move to another city within the next few years. However, after three years living in your home, the equity gained from home appreciation or paying down your mortgage may be sufficient to help you recoup your initial costs.
