When Is the Best Time to Buy a House?

Every Season Can Be Homebuying Season

Buying a house is a major lifestyle choice and a huge financial commitment. Obviously, you want to find the best house at the best price. Figuring out when is the best time to buy a house makes good sense when you're making such an important purchase.

Most people think of spring and summer as the best time of year to buy a house, and there are some definite benefits of purchasing during better weather. However, there are also advantages to buying in winter and fall.

Ultimately, the best time to buy a home is when it makes the most sense for you based on your finances and goals. This guide can help you figure out the right time so you can set yourself up for success when you purchase your home.

Is It a Good Time to Buy a House? Why Timing Matters

As mentioned above, the best time to buy a house is when it makes sense for you. This means you can afford it and find a home at the right price. However, it's also important to consider other factors beyond your financial situation or whether you're ready to own a home.

External factors like changing mortgage rates, the real estate market, local housing prices, and seasonal trends in home availability can also affect the price you pay, your costs over time, and your ability to find a home that you really like.

The time of year when you buy a home can make a surprisingly big impact, as this guide will show.

Buying a Home in the Fall and Winter: Better Deals, Less Competition

When you want the best price on a new home, buying in the fall or winter typically is your best option because sellers are often more motivated to make a deal -- especially if they listed their house in the spring, and it still hasn’t sold.

Homeowners may be very motivated to close sales during the fall because they want the deal completed before the holidays begin. They might also want to close before December 31 for tax purposes if they're hoping to claim gains or losses from the sale on their current year's tax return.

Cold weather in many parts of the country can also be an incentive to convince sellers to accept a good deal, as the house may not look its best when covered in snow and ice. There is also less competition from other buyers who don't want to shop for homes in bad weather or who don't want to pull their kids from school mid-semester.

Disadvantages of Buying a Home in the Colder Months

While there are some financial benefits to buying a home when it's cold outside, there are also some big disadvantages too. Here are some of the biggest downsides to purchasing your property in the spring or in the fall:

• Fewer homes are listed: Since most sellers put their properties on the market in the spring and summer, you'll have fewer homes to choose from as a fall buyer, and especially if you’re a winter buyer.
• There are fewer open houses: Since the fall and winter are slower times, real estate agents typically don't hold as many open houses. Those events make it easy to look at a property without having to make a special appointment.
• Looking at homes and moving in winter isn't pleasant: You may not find it very fun to walk around in the cold and potentially drive on snowy or icy roads to look for a home. Moving all your belongings in freezing weather isn't ideal either.
• Inspections can be challenging: An inspector may not be able to see the true condition of the home, including the roof or the AC, if snow or ice has made these major components inaccessible.

The typically lower inventory during the winter months is an especially big disadvantage because even fewer sellers list homes during the winter than the fall. On the flip side, though, fewer buyers will bid on the houses that are listed, which means sellers may be even more ready to cut a deal.

Buying a House During the Holidays

Real estate professionals say the holiday season is a great time to make offers on houses. That’s because most buyers are taking time off from house hunting, which leaves the door open for you. If you catch a seller at the right time with a fair price and no other bids on the table, they might just say yes.

Buying a House in the Spring and Summer: More Options

Spring and summer are prime homebuying seasons, and it’s easy to understand why.

Better weather in many parts of the country makes it easier to visit homes for sale and simpler to move. Families with school-age children also like to move during the summer so they don’t disrupt their kids’ education.

Plus, many sellers like having their houses on the market in the summer, since properties typically show better when the weather is good. This means that homebuyers often have many choices. So, is it a good time to buy a house? Maybe if you want the most options.

Disadvantages of Buying a Home in the Warmer Months

Despite the clear advantages of buying a home in the warmer months, there are also some downsides to think about as well when considering the best season to buy a house. Here are the biggest disadvantages of purchasing when the weather gets warm and the market heats up.

• You are likely to pay more for the house you want. There are usually more houses for sale during the warmer months, but there are also more homebuyers bidding on them. This can sometimes lead to bidding wars, and it almost always means higher home prices than in the winter due to increased demand.
• Sellers are often less willing to negotiate on price or make other concessions to sell their houses, because they think other buyers will agree to more favorable terms.

Before You Buy: 3 Tips So You’re Ready When the Time Is Right

If you're waiting until the best time of year to buy a house, you should take some steps in the meantime to get ready to make the purchase. That way, when a great house comes along, you are ready to jump at the chance. Here are a few tips to make sure you're prepared.

1. Consider the Local Housing Market

Housing market conditions in the community where you want to buy can make a huge difference if you are exploring the best time to buy a house.

If there are a lot of houses for sale, it can be a great time to buy. In addition to plenty of choices, you’ve got bargaining power on price. If there are only a few houses for sale and the demand is high, you might want to wait.

2. Assess Your Finances

The best time to buy a house is whenever you can comfortably afford it and are ready to own a home.

You'll want to make sure that your credit and other financial credentials are good enough to get a favorable interest rate. Most lenders have a minimum required credit score to buy a house and higher credit scores allow buyers to benefit from the lowest possible mortgage rates. Your lender will also look at your debt-to-income ratio and employment history to make sure it's stable.

For a quick estimate of how much house you might be able to buy, check out our mortgage affordability calculator. It can help you understand what homes you may be able to afford, as well as the monthly mortgage payments that come with them.

3. Team Up with a Real Estate Agent

A real estate agent can help you identify the best time to buy a house, and can work with you to decide when to buy a house based on your financial goals.

Real estate agents know market conditions and can help you to better understand whether a price is fair and which way prices are trending. Customers who buy homes with Real estate agents tend to pay less than customers who buy similar homes without an agent.

Final Thoughts: The Best Time to Buy Is When You’re Ready

Deciding when to buy a house is a huge decision and not one to be taken lightly. You should carefully consider all advice on when it is the best time to buy a home so you can make the most informed choices to fit your financial goals.

If you are ready to move forward with the buying process or simply to find out how much you can save with the best mortgage, reach out to Freedom Mortgage today to get prequalified and get started on your home-buying journey.