Best Time of Year To Buy a House
Forbes Advisor Staff, Contributor
Natalie Campisi, Josh Patoka
The best time to buy a house? Fall and early winter.
More specifically, October is when buyers typically get the best prices on real estate, according to a report from ATTOM Data Solutions, which analyzed more than 39 million single-family home and condo sales between 2013 and 2021.
The amount buyers spend over the median value of a home, as determined by an automated valuation model, is an average of 3.3% in October, the lowest of any month. The premium is 3.7% in both November and December.
Which Seasons Are Best To Buy a House In?
Home buyers will likely find the best deals in fall and winter. As for the worst time to buy a home, spring is generally the most expensive season.
May is the worst month for finding a deal, with a premium of 10.5% over market value, according to ATTOM.
“Apparently the old adage ‘Spring forward and fall back’ applies not only to setting your clocks, but to home prices as well,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Seasonality has always had an impact on home prices, which tend to weaken in the fall and winter months when there’s less buying activity.”
“Savvy homebuyers can take advantage of those lower prices and less competition from other buyers once the leaves start to turn,” Sharga added.
Is Winter a Good Time To Buy a House?
Winter can be an excellent time to buy a house as there’s usually less competition between buyers. Sellers may be more willing to negotiate to make a sale since buyer interest is lower than it is in the spring.
A potential downside for buyers is a relative need for more inventory as potential sellers may wait to list until the weather warms and there’s more competition.
Evaluating a home’s exterior grounds in a cold climate can also be challenging especially if it’s covered with snow or ice. At the same time, inspecting a property during the winter lets potential buyers determine the effectiveness of heating systems and the structure’s integrity.
Is Spring a Good Time To Buy a House?
Not usually. While spring is generally one of the best times for inventory, competition is also fiercer which can result in bidding wars and less room to negotiate with sellers.
Sellers who patiently waited through winter list their homes in the spring months when there are more potential buyers and it’s easier to show off curb appeal. The fair weather also makes it an opportune time to inspect exterior landscaping and tour multiple properties.
Is Summer a Good Time To Buy a House?
Late summer, specifically August, tends to be a better time to buy than early summer as there’s more likely to be a healthier balance between inventory and prices. In June and July, many housing markets still have strong demand and inventory levels carrying over from spring, giving sellers more advantages.
A potential downside includes less negotiation power than in the fall or winter for buyers not in a rush to buy. Touring homes may be challenging for working families during summer break if parents need to arrange child care. Completing a last-minute move can also be a hassle when changing school districts if you close as the new school year begins.
Is Fall a Good Time To Buy a House?
Fall is one of the best seasons to buy a home as buyers can typically negotiate a more desirable price before sellers take their home off the market prior to winter. There can also be fewer buyers as autumn progresses, although inventory is lower compared to spring or summer.
October can be the best month in the fall to buy a home as prices tend to be less competitive but inventory remains at a good level. Where severe weather is of concern, buying during this month still gives time to settle in before the brunt of winter arrives.
Is It a Good Time To Buy a House?
When Forbes Advisor summarized an earlier ATTOM report, buyers could expect to pay market value on some select days in the year, rather than a premium. Now, even with rising mortgage rates, demand still remains relatively hot, at least at the time the report was released in October 2022.
While existing home sales dropped month-to-month throughout much of 2022, according to the National Association of REALTORS®, home prices continued to climb as housing supply remained limited. Some experts see a housing market correction on the horizon.
“There’s a possibility that some of the homebuying trends that were driven—or at least accelerated—by the pandemic might be tapering off or even reversing themselves.”
— Rick Sharga, executive vice president of market intelligence at ATTOM Data Solutions
“What we’re going through right now is a healthy adjustment in the housing market,” says Ali Wolf, chief economist for Zonda, a housing market research and analytics company.
Wolf has been watching several different housing-market metrics grind back to 2019 levels. “This is a return to normal where a lot of the froth has been taken out. Supply and demand are still out of whack, but they’re coming closer to balance.”
Best Month To Buy a House
The housing market tends to be a lot more active in the spring and summer than in the winter. Many people want to get settled in a new home before the school year begins in the fall. Even if they don’t, they usually need to take advantage of the increased level of listings from sellers who do.
That means the colder months can be a great time to house-hunt. There’s far less competition, and many listings may have been on the market for a while, meaning sellers may be more motivated to make a deal.
