Best Time to Buy a House?
Hoping to buy a house or condo in 2019 or 2020? You’d be very wise to consider the timing of your purchase.
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 $100
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 shopping.
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 your money. In real estate, timing in buying may be even more important than location. Finding the right realtor who knows the market and has years of experience is vital as well.
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 end up parting 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
- 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.
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 above reveals fall prices drop by about 7% yet still remain 5% below for the months of January, February and March. 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 actual possession date is off in the future.
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.