However, we also know the past year has been a unique one. COVID-19 may have you asking yourself, “Is now a good time to buy a house?”
According to Forbes, the pandemic has people prioritizing how they want to live more so than where they should live. With these concerns in mind, we offer this guide to help you decide when is the best time to buy a house, and more specifically, when is the best time of year to buy a house.
Buying in the Spring
It could be argued that the best time to buy a home is in the spring. You have comfortable temperatures, and the kids will have time to acclimate to their home well before the fall semester. However, the market is highly competitive in spring. This should not be a deal-breaker, but it does mean that you should have a clear idea of what you’re looking for and what your budget will allow. If you decide that spring is the best time of the year to buy a house for you, then you should be in a position to buy with confidence and an understanding that you may have to make sacrifices to stay competitive.
Buying in the Summer
For many, summer is the time to buy a house, and here’s why: inventory is usually good because sellers want to get moved before school starts, and if their home hasn’t sold yet, they are motivated and will typically lower their prices. Sellers are searching for that sweet spot between earning a profit and appealing to the greatest number of buyers, which results in a win for everybody. It’s true that maybe a seller doesn’t earn quite the profit they’d hoped for, but it will still be a profit they can live with, and buyers can leverage this situation to their advantage.
Based on this strategy, the best month to buy a house might be August. This time of year seems to yield a reliable balance between supply and demand, a situation permitting the fairest transaction for all parties involved.
Buying in the Fall
How about the fall? Is it a good time to buy a house? For some, the answer may be yes. Particularly, families without children may find fall a good time to buy a house because not being tied to the school calendar frees them up to explore a quieter market. Given that the fall market is slower, buyers should not hesitate to negotiate. If you can, learn a seller’s motivation for selling in the fall, as it may reveal valuable information about the property in question.
Buying in the Winter
One huge reason to buy in winter that we may not have considered is quite simply that there are fewer competitors – by a lot – during this time of year. It is the most “buyer” of buyer’s markets available. In some states, it may seem that winter wouldn’t factor into the buying process because there isn’t much seasonal change. Texas is one of those states, so buying here means it’s always a good time to buy a house.
Other Factors to Consider
Of course, not all factors about when to buy a house can be divided neatly into a discussion of the four seasons. You have to consider where you are personally and what your ultimate goals for homeownership are. At the personal level, it becomes a question of when is a good time to buy a house versus when is the right time to buy a house. These are questions only you and those closest to you can answer.
The Housing Market and the Economy
The COVID pandemic has transformed the housing market across the country. Depending on your state’s economy, there is likely a low-interest rate waiting for you. The recession is tragic in that it is affecting the livelihoods of all Americans, but one way to jumpstart it is to take advantage of lower interest rates and slashed down payment requirements. The best time of the year to buy a house is during years when interest rates are low – like now.
Regardless of the economy, what matters most in your decision to buy a home is whether or not you are ready. When it comes to answering the question, “is now a good time to buy a house?”, only you can decide. Some things to consider:
- Have you budgeted for all aspects of the home, including mortgage, escrow, and insurance?
- Can you comfortably afford the down payment for the home you want? It may be worthwhile to consider waiting for the home you are dreaming about.
- Are you (and your family) ready to make a move from where you are to a new home?
Ultimately, it comes down to your own goals, personal timeline, and finances to know the best time to buy a home is for you.
When You’re Ready to Purchase a Home, Consider Hillwood Communities
If you’ve decided now is the time to purchase a home, consider Hillwood Communities. We believe in creating connections in neighborhoods and bringing people together. When it’s time to buy a house, remember that it’s more than brick-and-mortar; it’s the place you will build a life and call home. Contact us today to learn more.