Many people feel that summer is the best season to buy or sell a home. The weather is nice, families are looking to move while kids are out of school and there is more housing inventory on the market.

But that doesn’t necessarily mean that is the best time for you to buy or sell a home.

Hello, this is Michael Anthony O’Connor with Community Home Funding and in this video I am going to share information about home buying seasons and how to determine when the best time is for you to buy or sell your home.

You’ve probably wondered, does the time of year actually matter when buying a house?

Seasonality affects many factors in home buying. The first is inventory which is the number of homes for sale. This also affects purchase price. During the spring there is usually more inventory, however, competition among buyers may cause prices to rise.

On the flip side, in the winter there may be fewer homes on the market, but there may be fewer buyers as well, so home prices may be lower. This is because moving in may be more difficult in some parts of the country, depending on the weather.

The best time for you to buy or sell a home isn’t always when inventory is highest or when prices are the lowest. While these are surely important factors to consider, the broader, more important factor to look at is your personal need.

The reality is that you can find houses during all seasons. Determining the best time to jump into homeownership means understanding the pros and cons of buying a house at different times – and deciding when it’s best for you.

Let’s look at how the time of year affects home buying, along with some other factors to consider beyond seasonality. Let’s begin with buying a house in the winter months.

Buying A House In The Winter

If you are looking for a deal, winter is usually the cheapest time of year to purchase a home. Sellers are often motivated. Most people suspend their listings through the holidays, which is Thanksgiving to the New Years because they assume buyers are scarce. Sellers who do list this time usually want to sell as soon as possible. They may even be more willing to throw in extra perks such as appliances and window treatments.

Potentially lower purchase prices aren’t the only savings. Real estate agents want to make sales during the slow periods and are more open to negotiating closing costs and commissions.

However, while prices may be enticing during the winter, inventory is much more limited. Your dream home may be harder to find with a limited selection of houses.

Winter may also mean that you may have to do your house hunting in less-than-ideal weather, depending on which part of the country you live in.

Despite winter home-searching challenges, the closing process tends to be speedier. Lenders process fewer applications during this season. Real estate professionals are usually more accessible, and inspectors have less backlog. Let’s move on to warmer times and look at buying a home in the spring.

Buying A House In The Spring

Spring is usually a hot time of year for the real estate market. The warmer weather tends to draw out sellers and buyers, which creates a healthy marketplace. This could be a good or bad thing for you if you’re looking for a new home. There certainly may be more choices, but there are also more buyers, which means more competition. You may even find yourself in a bidding war.

One of the reasons sales inventories tends to increase when temperatures rise is because houses show better. Trees and flowers are in bloom, and grass turns green again. Houses look much better in the spring sunlight.

There’s also pent-up demand. Sellers generally price their homes high during the spring, and then bidding wars tend to break out, which can make for a challenging environment in which to purchase a home.

Home prices may be top dollar but buying in the spring is popular for a lot of reasons. Families are looking to move before a new school year.

If you are going to buy a home in the spring, make sure you are ready to move quickly, because you will have more competition.

Next season is summer!

Buying A House In The Summer

Like spring, summer is a busy buying season, but you may be able to take advantage of a deal if you are willing to wait until the last days of summer. The market is full of buyers in the early part of the season but may hold off towards the end of summer because of school seasons. Just like the spring season, be ready to move quickly if you find a house you like.

Be prepared with a strong offer and not just on price. Always make sure that you are pre-approved for your home loan with a lender.

In most areas the market tends to slow down in late August. This gives you a great opportunity to find deals because sellers slash prices even further. Don’t blow off the houses that have been on the market during the whole spring and summer season. These can be great homes and there are renovation loans for those homes that need some remodeling. There are many reasons why a home might not have sold during the spring or summer months. It may be as simple as a buyer backing out because their home didn’t sell. Regardless, a home that has been on the market for an extended period may end up being a great find for you!

Buying in the summer has its pros and cons, but timing matters a lot. If you can hold off until the end of the summer, deals abound. However, if you need to get into a home before August, expect to pay top dollar and move quickly with your offer. Let’s look at our final season, fall.

Buying A House In The Fall

Outside of winter, a fall purchase can be ideal for a deal. Once summer ends, sellers get more motivated. They usually lower their prices and provide an opportunity to get a deal. Just like in the winter months, there will be fewer houses for sell in the fall months. But there will also be fewer buyers to compete with. Many sellers want to avoid moving during the holiday season which gives you more room to negotiate when you do make an offer.

You also get more attention from your real estate agent during the fall. Real estate agents have more free time to spend with you in the autumn months because of a decline in the number of sellers.

Other Factors to Consider Besides Seasons

Sure, seasonality plays an important role in the home buying process, but there are other, sometimes equally important, factors to consider when determining the best time for you to buy a house.

Housing Market Conditions

The real estate market may fluctuate with the seasons, but there are broader market trends that influence housing prices, inventory, and current interest rates. For example, lower interest rates in response to the COVID-19 pandemic (and related economic struggles) in 2020.

Even when house prices are low, you’ll want to consider how mortgage interest rates affect your total expenditure over the life of the loan. The savings from a good purchase price may be quickly offset by a high interest rate. With interest rates at historic lows right now, many home buyers are taking advantage of this chance to save big on

interest. Even though demand and prices have gone up, plenty of people are finding it a good time to buy a house.

Personal Readiness

One of the most important factors to consider when buying a home is your personal readiness.

No matter the season, you’ll want to make sure your credit is in good shape, your debt is under control, and you are working with a great lender who can help you through the process and find the best home loan for you.

Buying a house is a big commitment, and timing your purchase is important. Each season brings with it both positive and negative factors when shopping for a home, including inventory, competition, and prices. Ultimately, though, the best time to buy a house – and get a mortgage – comes down to your own readiness.

Thanks for watching. If there is anything we can do to help you with your home financing goals, please don’t hesitate to call.

Michael Anthony O’ Connor
President | Mortgage Broker
Certified Veterans Lending Specialist
Community Home Funding, Inc.
NMLS# 254139
CA DRE: 01149902
(833) 444- 3464