The Best Time Of Year To Buy A House

Real estate can be quite the seasonal market. With home prices, inventory, tax implications and a slew of other factors fluctuating from month to month, knowing how these elements typically change over the course of a year can really help. That said, your own personal situation and timeline for finding a new home will drive everything, of course.

Maybe you need to make sure you move before a new school year starts for the kids. Or perhaps you’re relocating for a job and your wiggle room on when to buy and sell is minimal. Still, understanding the best time to search for, finance and purchase a home can help you adjust your timeline as much as possible to get the most bang for your buck.

When Is The Best Time To Buy A House?

Like everything in real estate, it varies by geography, price range and a bunch of other circumstances, but typically late fall/early winter is a great time to buy. Why? The logic behind this lies in home pricing and competition. If a house is on the market in spring and summer, there are likely a lot of other potential buyers out there competing with you for houses.

Many people want to figure out where they’re moving before the school and work season kicks back in as autumn approaches, so demand is high. With the simple economic law of supply and demand applied, you can guess that home prices tend to be higher this time of year. Houses that don’t get sold and are still “sitting” when fall approaches represent a likely candidate for a price drop – a good time to swoop in to get a bargain.

In addition, houses that are newly listed in the fall and winter won’t get as many showings with a reduced buyer pool. That means when you make an offer you can be a bit more frugal, with the likelihood of getting into a bidding war diminished. Furthermore, sellers putting their house on the market at this time clearly have extenuating factors for the timing of it, so they’re likely in a bit of a hurry.

This impatience often results in accepting less for the house than they would if time wasn't a factor. Most of us tend to buy when it fits our timeline based on work, family and many other factors, but if you have some flexibility, aim for the late fall and winter for bargain prices. If you’re not worried about how much you’re going to spend – well, first off, congrats! – then the spring and summer make more sense. Many more houses on the market means a plethora of options for you to choose from.

What Is The Best Month To Buy A House?

So now you know the season, but let’s dial into the exact month that will be the best time to buy. Keep in mind that this is an analysis of how to get the best price for a home, not which month is best for packing up and moving – icy roads and moving trucks make a terrible pair – or any other of the endless peripheral tasks associated with buying a house.

So, the month to target if you can is ... February! The spring market hasn't quite hit yet (though in some markets it comes early so check with a local realtor on this), so you can get the low prices you’re looking for without a lot of competing buyers. Again, this might not be the best time to buy in terms of home selection, but in terms of stretching your dollar, it's the sweet spot.

What Is The Best Time To Apply For A Mortgage?

As soon as you’re thinking of buying a home, start the process of applying for a mortgage. This doesn't mean you need to go through with it right away, but the sooner you talk to a lender about what you can afford, the sooner you can get to looking at houses.

The best time to actually go through with the loan and lock in your interest rate has more to do with financial trends, both personal and global, than a specific time of year. When interest rates are low – like right now – you’re going to pay less for your mortgage. When they’re high – you guessed it – you’ll likely pay more.

On a personal level, think about what your credit score is now and is likely to be in the future. A lender can recommend whether or not to pull the trigger on a mortgage right away or to wait until that credit score improves a bit. The better the score, the better the mortgage rate.

When Should You Start Looking For A House?

As soon as you’re even remotely thinking about making a move, a little research to see what’s out there is a good idea. The more time you have, the more you can watch the market and be selective on what types of homes you might be interested in. All situations are unique when it comes to finding the right home, but knowing the best time of year to look, finance and close on a house can help you make informed decisions.

Before you start going to see houses in person though, get preapproved. This doesn’t mean you apply for the actual mortgage, it just lets you get a clearer idea of how much house you can afford. After all, it’s no fun to look at houses out of your price range just to get all excited about them and then not be able to buy. Conversely, it's equally not as fun to look at houses that don’t meet your needs because you think you can’t afford more when, after talking to a lender, you discover that you actually can.

All situations are unique when it comes to finding the right home, but knowing the best time of year to look, finance and close on a house can help you make informed decisions. Keep in mind that most of us become sellers when we buy a home, so discussing with your real estate agent how the optimal selling seasons and buying seasons fit your specific situation is critical. We can’t all get that bargain sale home in the winter and then wait for the spring’s higher prices to sell, so talk to your agent and lender and find that sweet spot in timing that’s just right for you.