The Best Time to Purchase a Home
Summary: Multiple factors come into play when considering the best time to purchase a home. Every buyer and their situations are different. Seasonality and timing are key influences, however, finding the best time to purchase depends on you– when you are ready and confident!
Before you apply for mortgage and buy a house, it may be nice to know the best time to purchase. The best time to purchase a home depends on a lot of factors, including the time of year, inventory, and home pricing.
The Seasonal Influence
The housing market tends to cool down during the winter and prices drop. Due to the slowdown of the market, realtors are more available and open to negotiating as they are determined to help sell their client’s home. Although homes may be more affordable, inventory is limited.
The housing market is hot during the springtime! Buyers have an abundance of homes to choose from, but also face intense competition. Home prices increase during the spring season, but so does inventory. The reasons behind such a hot home buying market are due to greater home appeal under the spring sun and built-up demand. Many sellers and buyers wait through the winter to list their homes, creating more competition and demand when listing in the spring.
The hot spring housing market spills into the summer. Potential buyers will experience high inventory and high competition as they search for the home to call their own.
The housing market begins to wind down during the fall season. There is less inventory for buyers to shop around. However, realtors are more available due to the slowdown and are open to negotiation.
When You Are Ready!
Although seasonality plays a major role, the best time to buy a house is when you are ready. The right time to buy depends on your finances, goals, and personal timeline – for a home is a long commitment. You may not be able to control the housing market, inventory, or the price, but you can control your financial impression. As you embark on your home purchase experience, check-in on your credit score, have a lower debt-to-income (DTI) ratio, and start saving up for closing costs and down payment. Once you are confident in your finances, reach out to a mortgage lender and apply for a pre-approval letter. The pre-approval letter will spell out the loan type, terms, and amount available to you.
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