When Is The Best Time To Buy A House?

Buying a home is a complicated process with quite a few steps involved. You need to be in a good financial situation, be able to compare various mortgage lenders and find a real estate agent you trust.

And it’s important to get the timing of your move right – change is hard, so you want to make sure your family is ready. The best time to buy a house is typically fall or winter if you’re looking for lower home prices and less competition. If you’re looking for the largest selection of homes, then it’s better to go house hunting in the spring or summer. However, it also depends on other factors, like current real estate trends and your financial situation.

If you’ve been wondering whether you should buy a house or wait, we’ll help you determine when the best time to buy a house is.

When Is The Best Time Of Year To Buy A Home?

The real estate market is seasonal, and certain times of the year are more favorable to home buyers than others. Let’s look at some of the pros and cons that come with buying a home in each of the four major seasons.

Buying A House In The Fall

There are definite advantages to buying a house in the fall – sellers are becoming more motivated to get their homes off the market. This means you may be able to find a home at a better price than you would during spring and summer.

And since there’s less competition from other buyers, you can take more time to negotiate and find the home you want. But there’s also less inventory to choose from, and you may have to look harder to find your dream home. Buying during the fall also means you need to schedule things around the holidays, which could slow down the purchasing process.

Buying A House In The Winter

The advantage of buying a house in the winter is you’ll find better deals than you would during the warmer months. Often, these are homes that have been sitting on the market for a while, so the seller may be motivated to offer a steeper discount.

Most home buyers prefer to look for homes in the spring and summer and you’ll have less competition from other buyers. That means it’s less likely you’ll be outbid by another buyer or get caught up in a bidding war.

But you’ll have less inventory to choose from during the winter months. And inclement weather can make it harder to schedule showings and inspections. Another drawback is that landscaping features are often hidden during the winter or look different compared to the spring and summer. You can always look at pictures, but it’s more difficult to gauge what you’re getting into.

Buying A House In The Spring

Most home buyers prefer buying a house in the spring – the housing inventory is high, so you have more homes to pick from. However, you also have more competition from other buyers, so you may not get the home you really want.

And since the demand is higher during the spring, home prices tend to be higher. So even if you do find your dream home, you may end up paying more money for it.

Buying A House In The Summer

Buying a house in the summer is similar to buying a home in the spring, but there’s slightly less competition from other buyers. Home prices tend to drop later in the summer since the market tends to cool off as fall approaches.

Summer is a great option if you need to buy and sell at the same time. That’s because the market is more balanced, and supply and demand are typically fairly equal.

Be prepared to deal with hot weather. Plus, buyers with children often feel rushed to make a purchase before the start of the school year.

When Is The Best Month To Buy A House?

There is no perfect time to buy a house – regardless of what month you choose, there will be pros and cons to that decision. So, the month you buy a home should be based on your priorities.

For instance, if you value finding a better deal on a home and want to avoid intense competition from other buyers, the fall and winter months will be your best bet. But if you value having more options to choose from, then the spring and summer months are a good choice.

According to the National Association of REALTORS^® (NAR), housing inventory hits its peak around May. After that, the number of available homes continues to drop. If you’re looking for a balance between affordability and high inventory, August is the best time to buy as the market begins to cool going into fall, but the best deals are typically found in late fall and winter.

When Is The Best Week To Buy A House?

Historically, the best week of the year to buy a house is the week of October 1 through October 7, but you shouldn’t hold off making an offer on your dream home.

If a home goes on the market in the middle of the week, it’s a good idea to put in an offer immediately. If you wait until the weekend, you run the risk of another buyer snatching it up after an open house or showing.

However, if a home is listed on the weekend, that doesn’t mean you should wait until mid-week. If you do, the house could be off the market by then. Ultimately, it doesn’t really matter when a house goes on the market – the key is to be ready to act quickly once you see the home you want to purchase.

When Is The Best Day To Buy A House?

The best day to close on a home is probably the middle of the week. If you wait until the weekend, there could be delays with wire transfers not going through and banks not being open. Finalizing your home sale mid-week ensures you can get all of those issues worked out.

How To Decide The Best Time To Buy A Home

Timing matters when it comes to deciding to buy a house now or wait, but it isn’t everything. Here are some other factors you should consider before buying a house.

1. Evaluate Your Finances

Evaluate your finances to determine your financial readiness to buy a house. There are several financial factors that affect a home buyer’s preparedness, including:

• Credit score: The best credit score needed to buy a house is 760 or higher. But to qualify for a home loan, you’ll need to meet the minimum credit score requirement, which ranges from 500 – 680 depending on the type of the loan
• Debt-to-income ratio (DTI): Lenders will evaluate your DTI to determine your ability to manage monthly mortgage payments. The requirements vary by lender, but most look for a DTI of 43% or less.
• Savings: You’ll need to have enough savings to make the minimum down payment and pay closing costs. To avoid private mortgage insurance (PMI), you will need to make a down payment of at least 20% of the home’s purchase price, but some loans require as low as 3% down (or even 0% down, like with a VA loan). Closing costs generally range between 3% – 6% of the loan amount.

2. Research Current And Projected Home Prices

You can also analyze median home prices, how they’re trending and how they affect the best time to buy a house. Here’s a chart showing median home prices in the U.S. over the last 6 months.

3. Research Current And Projected Mortgage Rates

Current mortgage rates are also a major factor affecting the best time of year to buy a house. Higher interest rates will affect your monthly payment, and you’ll end up paying more in interest over the life of the loan. Here’s a chart showing average monthly mortgage rates during the first week of each month.

4. Analyze Additional Factors

There are additional housing market conditions that impact the best time for you to buy a house, such as:

• Housing inventory: What’s available on the market affects the best time to buy. For example, fewer homes on the market often result in more competition. When more buyers are competing for the same houses, it could push prices out of your budget.
• Buyer’s vs. seller’s market: Whether it’s a buyer’s vs. seller’s market affects the best time to buy a house. A buyer’s market, which is when there’s a surplus of homes for sale, is often considered the best time for buyers. This gives buyers more power to negotiate with sellers.
• Emotional readiness: If you aren’t emotionally ready to buy a house, then it likely isn’t the best time. Don’t force yourself into one of the most stressful and expensive purchases of your life if you don’t feel ready.

5. Work With A Real Estate Agent

Economic conditions can change quickly, and it’s impossible to perfectly time the real estate market. Being financially prepared is the best way to ensure you can handle the challenges that come with buying a home. If you do decide to buy a house, it’s a good idea to work with a qualified REALTOR^® or real estate agent.

The Bottom Line: The Best Time To Buy A Home Is When You’re Ready

The real estate market will always have its ups and downs, and it’s impossible to perfectly time your home purchase. Focus on getting yourself in a good financial situation, and then find a time to buy that meets your needs and preferences.

If you’ve decided it’s the best time to buy a house, you can start the approval process with Rocket Mortgage^® today.