Sometimes, we don’t have a choice when we buy a house. Factors such as changes in employment or family circumstances can dictate our need to buy a home at any time of the year, regardless of the market’s status. Of course, there are always broader market changes to consider – rising and falling markets – but putting these significant reasons aside, when is the ‘best’ time to buy a house? Does the time of year affect the price, and is there such a thing as a ‘low’ time?
Any real estate agent will tell you that the housing market is influenced by the time of year. There are definite highs and lows in buying and selling real estate, and as a buyer, this can make a significant difference in the purchase price and incentives you can negotiate. So, what are the highs and lows, and how can you make the most of them?
The Low Times to Buy a House
In most markets in the United States and Canada, the low time is the winter season, especially in the colder climates. As winter weather sets in, the desire to buy homes and move decreases for a number of reasons, as do the number of homes listed.
Viewing homes during the winter may not be a particularly pleasant experience. If you’re dealing with snow and cold conditions, it’s less enticing to go out on a chilly day to view homes. Additionally, if you do go out, you can’t always get a good sense of the exterior of a home because of the snow cover. Snow can hide garden features, landscaping, and even aspects of the roof, making it harder to judge the overall condition of a home.
If you decide to look for homes during the winter, you’ll find that far fewer homes are listed. This is not an ideal situation for a buyer, as you’ll have fewer options and may end up choosing a home that doesn’t fully meet your needs. On the other hand, fewer buyers are looking, which gives you the upper hand. If a seller needs to sell, they are more likely to accept a lower offer and provide extra incentives, such as help with closing costs, during the low season than they would in the peak season. On average, you could save between 7% and 10% by buying a home in the off-season.
The same can be said for buying from a builder. Builders are often eager to move inventory during the fall and winter months, so you can frequently negotiate discounts and upgrades during this time.
The High Times to Buy a House
Winter is not always a low time for house buying, as it depends on location and market type. Ski resorts, for example, and towns near skiing or other winter recreation areas can actually see a boost in sales during the winter. People visiting the area for skiing may combine their time on the slopes with looking for homes, whether for year-round living or just seasonal use. In such locations, the better time to buy would likely be in the spring or summer when the resort is less crowded.
However, in most cities across North America, asking prices and the number of homes listed for sale rise in the spring and summer. As the weather warms, so too does the desire to buy.
For buyers, the advantage of looking for homes during the high season is the greater number of homes available. This gives you a much better chance of finding the home of your dreams. However, the increased competition also makes purchasing more difficult. With more homes on the market, more buyers are looking, which can lead to bidding wars and inflated prices, potentially pricing you out of your desired home.
So, there are numerous factors to consider when deciding on the best time to buy a home. Buying during the low season may secure you a better deal, but there will be fewer homes to choose from. Buying during the high season offers more options, but with the added competition, it becomes a seller’s market. The ball is in the seller’s court, and they can choose the best offer, driving prices higher.