05 Jul When is the Best Time to Buy a House?
Best Time to Buy a House?
It seems certain days and months of the year are perfect to buy. And given the high home prices everywhere, being smart could save you $20k to $100k (e.g., Los Angeles, San Diego, San Francisco or New York).
How long does it take you to earn $30,000? Now I’ve got your attention.
As an example Let’s start off with this chart of homes sold in pricey California home prices below. Take a good look at the price drops every December and January. That’s a big dip in price that no one pays attention to. Sellers in those cold winter months are in a completely different mindset. That’s just one element of smart home shpping.
Stock market advisors suggest buying stocks continuously without regard to market fluctuations. In the housing market however, as you just saw, that’s not smart. Timing your buy strategically can help you acquire a much better house or condo for you money.
In real estate, timing in buying, may be even more important than location.
In every major city, the market forecast is very good for 2019. The Boston housing market, New York real estate market, Florida housing market, Houston housing market, Seattle, San Francisco, Philadelphia housing market, or Los Angeles housing market, the value of real estate has surpassed the stock markets, gold and of course your savings account. You must be intelligent or you’ll part with all of your money.
Housing Market Best Timing Signals
Let’s Summarize some of the Best home buy signals:
- temporary price depreciation/lull
- fall/winter season
- mortgage rate changes
- bad news/political upheaval
- avoid bidding wars
- look for properties poorly marketed or promoted
- avoid properties being sold by top Realtors in your town
- recessions/market crashes
- homeowner is having more trouble paying their debts (January, February)
- house is listed well below comps
Look for those times when the owner feels their home is worth less, or when you’re the only prospect. Avoid times when there is lots of competition which could push prices up by tens of thousands.
An if you’re a first time buyer, paying a huge chunk of your income to rent, this whole matter of buying at the right time is important to your current and future well being. Don’t go from losing a little equity every month to losing a boatload in one day.
Avoid the Peak Times to Buy a House
When housing prices peak, it’s because too many buyers are chasing too few homes. Very predictable and you must avoid wasting your money in the frenzy.
As you read in the US housing market report, prices are rising so we know sellers are taking advantage of the situation.
Okay, for those without a strategic sense, buying in the fall and winter months traditionally might be best to get lower prices. However, everyone pulls their house off the market during October, November and December.
If you have a smart Realtor, and a good home search strategy, you might be able to find those sitting on the fence and get a low ball offer in. You might get lucky and save tens of thousands of dollars and get a special property.
Is Spring the Best Time to Buy a House?
Spring is when the frenzied house search begins. Home owners and buyers are arising from their winter dens and thinking about a new situation. Then in May, June and July prices hit their records, and for some reason, many buyers feel compelled to pay way more than they should.
If homebuyers are actively listing to sell during January to March, then they’re likely eager to sell their listed home. Be sensitive to these times when buyers will unload their property, when demand is low, where there’s little competition and where the owner psychologically devalues their precious asset.
How do millionaries get rich? Buying real estate low and selling high. That’s what you’re going to do, strategically. It’s not about negotiation tactics and realtor connections, it’s about a thorough strategy to get the lowest price.
That Inventory Peak in October Looks Interesting!
This chart from Trulia shows us how a home search strategy begun in October could be fruitful. If the buyer balks at your low ball offer initially, by January and February, they might be ready to sell.
A report from Trulia shown below reveals fall prices drop by about 7% yet still remain 5% below for the months of January, March and February. You can find a bargain from January to April 1st. That means you should be looking right now for your next home or condo, before mortgage rates start to climb.
January, February and March might be the best time of year to purchase a property for real estate investors as well.
This might run counter to what people believe and have been told about the market. It might be harder to search for a home and get sellers to sell quickly. But remember, the actually possession date is off in the future.
People who might sell have more time on their hands in the Winter, especially if they live in Seattle, Chicago, Philadelphia, Minneapolis, New York or Boston. It’ll be easier to get in touch with them and discuss your sincere, heart felt offer.
The best time to buy might be right now. If the economy improves and wages do rise, home prices will rise throughout the 2019 to 2020 period. A buyers market is forming in the long run, but 2018 is pricey.
Launching your Research to Negotiation Strategy
So now, you need to discover the best way to reach them. Having a realtor who feels similarly about the winter search timeframe is good. If they don’t like, go with someone else. The compatible Realtor is likely not busy so they can put a better effort into finding homes, approaching the homeowner, and working with you to put out the best offer.
They may even take a lower commission, but don’t push that. The Realtor will likely be worth the 2.5% you pay them. If you wait till April, May or June to buy, you’re getting the highest prices, most competition, and your Realtor is too busy handling multiple clients and micromanaging negotiations. So that’s the worst time to buy — when everyone else is.
Another bad time to buy? During the Super Bowl Game. Take a look at the Super Bowl predictions and put your money down, and then enjoy the game on Feb 4th, 2018.
When is the Absolute Best Time to Buy a House?
The very best, ideal time to buy a house in the winter, may be near or at the winter holidays such as Easter, spring break, or teacher professional developent days. Homeowners may be at home and may be most susceptible to the idea of selling and moving.
Late winter is a restless time for those in the cold, snowbound north, which is why a good number of people fly south for a vacation. Discontent, fatigue, boredom, and desire for something better is what gets them off the fence about letting go of their old house. Why do people sell in the spring? Because they’ve had enough after their winter of discontent. Catch them early.
Don’t worry about which days are best to buy a house. The key is to use your all channel accelerated home search strategy into action, and begin uncovering your dream house amidst winter’s gloom.
Good luck with your house search. You’ve found the best time to buy because it’s the best time for them to sell.
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