If you're considering buying a new home, it might be beneficial to time your purchase strategically. Research indicates that buyers tend to pay a higher premium, meaning a price above market value, during the spring and summer months. On the other hand, the fall and early winter months are considered the best time to buy a house.
If you're considering buying a new home, it might be beneficial to time your purchase strategically. Research indicates that buyers tend to pay a higher premium, meaning a price above market value, during the spring and summer months. On the other hand, the fall and early winter months are considered the best time to buy a house.
According to an analysis by ATTOM Data Solutions, buyers who close on their homes in October typically secure the best deal compared to the spring buying season. In October, buyers can expect to pay a 3.3% premium. In contrast, May is the worst month for finding a deal, with a premium of 10.5% over market value.
The housing market experiences increased activity during the spring and summer, as many people aim to settle into a new home before the start of the school year. This heightened demand can drive up prices and create more competition among buyers. Conversely, the colder months present an opportunity for house-hunting with less competition and potentially more motivated sellers.
ATTOM's analysis of home sales between 2013 and 2021 revealed that October, November, and December are the months when buyers typically enjoy the best prices on real estate, with premiums ranging from 3.3% to 3.7% above the median value of a home.
Moreover, specific days within this timeframe offer even better discounts. According to ATTOM, the best single days of the year to buy a house fall after Thanksgiving through the early days of the new year. These days include November 28, January 9, December 5 and 26, and December 19.
Conversely, the worst days for buying a house are typically in May when the housing market is more active. Specifically, the 20th, 23rd, and 27th of May tend to have premiums above 15%.
To prepare for buying a house, you should assess your debt and pay off as much as you can. Review your credit profile for any errors, evaluate your budget, consider future homeownership costs like repairs and property taxes, and determine your down payment amount. It's advisable to meet with mortgage professionals or get preapproved to streamline the financing process. Additionally, decide on your preferred type of home and location, track mortgage rates, and be ready to act swiftly when the right opportunity arises.
While the housing market has experienced fluctuations due to factors like rising mortgage rates and limited supply, some experts anticipate a housing market correction. However, the market is still influenced by various trends and uncertainties, making it crucial for homebuyers to remain diligent in their search for deals.
In terms of finding the best price, there may be opportunities in areas that experienced significant growth during the pandemic and are now readjusting. Cities like Phoenix, Austin, Boise, and Salt Lake City are among those where potential bargains could be found. It's important to work with a knowledgeable real estate agent who understands your goals and is willing to assist you even during the busy holiday season. Having your paperwork in order, including a mortgage preapproval letter and down payment, will allow you to act quickly when a suitable house becomes available. Finally, be prepared to seize sudden open house or private tour opportunities, as delaying viewing a new listing may result in missing out on the chance to make an offer before others.
