The US housing market has gone through an amazing recovery after the 2008 crash and it’s expected the market will continue to thrive for years to come as the fundamentals are as strong as ever. Therefore, many US citizens are looking into real estate, as spring has held the title of the best season to buy a new home.
But is that true?
While it might be the busiest season for expert realtors and people buying or selling homes, there are a lot of misconceptions people have. It mostly depends on your needs and preferences. For example, it might make perfect sense for parents who will have to get their kids into a different school.
In this article we’ll put the theory that spring is the best season to buy a new home under scrutiny.
For Realtors, Spring Starts Early
While the rest of us still patiently wait for the spring, in the real estate world the spring season is already in full swing. The spring selling season usually starts around January. Immediately after the New Year celebration, the market sees a burst of activity from those who’ve put off home hunting for after the holiday. This trend continues all throughout May and there’s a slight decline in September and until the end of the year.
While there are still some sales around Christmas, it is unsurprisingly difficult to find someone to do a home inspection around that time, so this period is mostly unpopular with buyers, sellers and agents alike.
Reconsider the Seasons
While for some people it makes perfect sense to buy a new home in the spring, experienced home sale agents suggest fall and winter could be more favorable. The reason is simple: there are fewer homes to look at and the buyers who choose this period are generally more serious about the purchase. That means that many people are only looking at offers in spring with few actually willing to buy. That’s why realtors are going to know you are serious about buying if you’re not one of the forty people to check out the open house. Furthermore, the competition is also lower during the season.
Buy When No One Else is looking to Buy
There are other agents that suggest December is the ideal month to buy property because the competition is low. Nobody wants to organize showings in the middle of the busiest season of the year. On the other hand, if someone is selling their home in December that means they have a strong motivation to do so. Often this translates to the sellers being more open to negotiating a better price, flexible terms or work on a tight schedule.
Buying during the Season is Not So Bad, Either
In most markets, the peak season is late spring throughout August. This period usually offers the biggest selection. However, the prices tend to peak during the summer as well. So while your choice is wider, you might have to invest a bit more.
Mind the Local Market
In warmer parts of the country like Florida or San Diego the home market fluctuations are not as evident. But regardless of where you buy, you should be mindful of the interest rates. It’s hard to predict where the rates will be or which loan programs you’ll be able to qualify for. If you wait for too long, you might not be able to qualify due to the rising rates and prices.
You can try and get the best out of the market, but the right time to buy a home is as soon as you-re ready. When you have enough money to cover the closing costs and down payment, if you have good credit and an experienced real estate agent, a stable income and are ready to commit to being a homeowner, you’ll know it’s the best time.