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
- the homeowner is having more trouble paying their debts (January, February)
- the 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.
And 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.