The ideal time of the year to buy a house isn’t necessarily when the prices are significantly discounted. The market and your demands will also influence into this very important decision. After all, it’s still feasible to find your dream home at any time of the year, whether it be the start or the end of the year.
Though purchasing a home in the middle of winter can secure you a discount, there are significantly less houses to choose from dwindling your chances of landing your dream home. During the spring, there are usually more houses on sale, but there is intense competition among the shoppers resulting in challenging bidding wars and negotiations.
Of course, the season matters when it comes to home buying as buying a home in your areas off season can save you up to $10,000. Most people are eager to find a new home before their kids resume their studies. The great news is that; you can still find a house irrespective of the season of the year whether you value saving money by waiting for the off season or having more selection during the peak selling times.
With that in mind, let’s look at what different seasons have to offer and in the end, determine which one suits your personal preferences for your area.
Winter
Winter is normally the most affordable time of the year to shop for a home. Sellers are often inspired, which is an excellent advantage to the buyers. During this time, the inventory is limited because most sellers feel that buyers are scarce. Those who put up their houses on sale are desperate to convert their most valuable asset into cash. During this time, buyers can find their dream homes at a discounted price.
Besides discounts, real estate agents are open to negotiations involving closing costs and commissions. This time of the year, the market is off-peak.
Though prices are quite affordable during the winter, the number of homes up for sale is limited. It can be arduous to find your preferred home due to limited selection.
Due to limited inventory, you have to step up your pursuit for your dream home and depending on your needs; you may not have adequate time to evaluate the house due to harsher weather. Winter in some areas is characterized by snowstorms which can make it challenging to look for a potential home entirely. During this time, there is a prospect that you can miss out on your dream home if for example there is a large snow storm that impacts your city and you are unable to attend an open house.
During the winter, real estate agents are also less likely to run as many open houses. It can be daunting to determine the duration of daylight, especially when the nights are longer and the days are shorter.
It will also be more challenging to ascertain the state of the roof if it’s enclosed in snow, nor can you get accurate results when testing the air conditioning unit as a result of cold weather.
In spite of the winter home-searching hurdles, the length of time to close is often faster. This is because lenders have limited applications to process during this time of the year. Also, realtors and inspectors are easily accessible due to limited backlog during this off peak season.
Spring
Spring presents a conducive environment for the real estate market. The warm weather and closure of learning institutions tend to drive out buyers and sellers in huge numbers, thereby creating a favorable marketplace. This has pluses and minuses if you are shopping for a new home. Though there are plentiful of houses to choose from, competition is still stiff.
Sales inventory balloons typically when the weather is warm because the houses curb appeals are more majestic. Grass regains its green color again, and trees and flowers start to bloom. Homes have an appealing look during the spring due to sunlight especially after the cool short winter nights.
The demand is very high. During the winter, there is little activity in the real estate market. Sellers generally slap higher price tags against their homes during the spring, and this prompts a bidding war, which makes it challenging to land your dream home within your budget.
Though buying a home during the spring is somewhat costly, there are plenty of reasons why this season is considered the most popular. Families look forward to settling as fast as possible to have enough time to prepare their kids for the next academic year. There is still plenty of time to search and shop for a new home, and the weather is terrific. If you are looking forward to buying a home in the spring, get ready to move quickly.
Summer
There is a lot of real estate activities taking place during the summer. However, if you’re looking to secure a lucrative deal, then you will have to wait until the last days of the summer. At the onset of the summer, the demand for homes is still very high, prompting similar bidding wars to that in the sprint which escalates the prices.
Besides the price, making a concrete offer will boost your chances of landing your preferred home. Sellers are reluctant to strike a deal with non-committed buyers. Summer is also the perfect time for those looking to sell their existing homes to purchase new ones. It’s possible to sell your home since there are lots of buyers out there looking for new homes and still have time to buy a new one. However even though you may make extra selling your home in the summer if you buy in the same season expect to put that extra money into the higher price of your new house during the peak seasons.
As August draws near, the market prices tend to shoot down. As we approach the end of August, sellers manage to lower their asking prices even further to lure what buyers still remain. Avoid overlooking houses that have overstayed on the market during the spring and summer selling seasons. It may be as a result of a buyer backing out, leaving the seller with no other option other than to offer a discount in a less competitive market.
Location is critical for any purchase made during the summer. In the US, the first weeks of the summer are considered peak, but this is selective. Florida is an example of this. In July and August, the temperature and humidity increase rapidly making it unpleasant for searching homes and even more unpleasant to move a four bedroom house in 100 degree weather.
Doing business in the summer has its ups and downs, but timing is critical. If you can wait until the last weeks of the summer, there is a prospect of reaping a great deal. However, if you are looking to settle before August, prepare to pay a top dollar and act quickly with your offer to make it more likely to be accepted by the sellers.
Fall
Fall presents the perfect opportunity for homebuyers with a limited budget. Once the summer is no more, sellers are more motivated to sell for whatever they can get. They offer discounts and provide a chance to strike a deal. Just like winter, the number of houses on sale is limited during the fall as the summer houses have all been scooped up. Most sellers are reluctant to move during the holiday season. This creates room for negotiations every time you make an offer.
There are limited buyers during the fall. Everyone is determined to be settled before the resumption of studies in the following year. Immediately when the fall commences, people tend to put-off their home shopping plans until the upcoming spring. If you wait until late September, there is a prospect of getting the most bang for your back. At this time, sellers tend to panic because time is running out for them to find serious buyers. This is usually the case with sellers looking forward to selling their home and secure a tax write-off before the end of the year.
Realtors are less occupied during the fall, and that’s why they have more time for consultations with the buyers. The significant decline in the number of sellers leaves the realtors with more time to engage on behalf of the buyers.
Conclusion
Every season has its pros and cons when buying a home and not forgetting prices, competition, and inventory. Price fluctuations are witnessed in all of these seasons. Therefore, the best time to buy a home will depend on your needs and budget. If you’re prepared to spend a top-dollar, then you can purchase your dream home during the spring or summer seasons. Winter and fall are the best seasons for cash-strapped buyers.
If you’re not in a hurry to buy a new home and you’re not concerned with the season this actually puts you in the best spot to find a home that meets your needs and start saving more aggressively earlier. You never know when your dream house will be listed for sale as people may get job offers in other cities or people move to be closer to family. You can work with your realtor to immediately notify you anytime a house meeting your desired set of criteria comes on the market. But if you are in the peak buying times be aware you will probably have competing offers against you so come in with your best offers, even if you do have to pay an extra 5 to 15 thousand dollars over the lifetime of your loan that only ends up being an extra 50$ to 100$ a month. With proper budgeting you can likely find a way to put this to your new mortgage and plan to get raises over the next several years.