Why Fall and Winter May Be the Best Times to Buy

“Timing is everything.” You’ve probably heard it and said it. It’s a well-known expression used regularly and repeatedly by many different people in a wide range of contexts and environments to express the idea that timing is important, even critical. And there’s good reason because it’s a true and valid statement that can be applied to so many situations.

In the real estate world, how does this expression apply?

Particularly for buyers, how and why is timing important in the home-search process? And how can you identify and take advantage of good timing?

According to an article on Inc.com, “timing is merely a function of finding the right balance between supply and demand and these are merely techniques for accomplishing that goal... You can afford to get a lot of other things wrong if you get your timing right.”

Now, if you’ve found and hired a great real estate agent to guide you through the home search and home-buying process, then it’s unlikely you’ll “get a lot of things wrong.” But it is true that timing is everything when you’re looking to buy a home.

Essentially, there are certain times of the year when buyers can save a significant amount of money in the home-buying process, and knowing this fact, and when to buy, can give you the upper hand/advantage you need to find a great house for a great price. Many buyers refrained from taking advantage of the 2018 summer’s hot selling season in the U.S. due to a) lack of affordable homes; b) rising home prices; and c) higher mortgage rates, according to a recent article by Bankrate. Home sales fell to their slowest pace in two years this past summer, according to NAR. But this wasn’t because the market was?slowing down; rather, sales fell because buyers simply couldn’t find the right home for them — a home that would meet their needs yet fall within their price range. But as fall ends and we head into winter and cooler weather, the market will likely shift, giving buyers a leg up going forward. In fact, here’s a little insider secret for you in your quest to find a home that meets your needs and that you can afford: Fall and winter may be the best seasons and times to buy a home!

Focus on Fall and Winter, Not Spring and Summer! Does this surprise you? Plenty of people have heard that spring is the buying season in real estate. The housing market often appears to be booming in spring and summer, and many buyers think that spring is the best time to look for homes.

One of the reasons that it’s a big real estate season, according to Julie Haley, Realtor? and owner of Property Source Pros, is that “many residential buyers, particularly first-time homeowners, use their tax refunds to assist them with the costs and down payments required to buy properties.”

Another reason that buyers prefer to shop in warmer months is that they prefer to move into their newly purchased home before the end of summer if they have school-aged children, so as not to disrupt the school year. What about buyers who don’t have children in school? Often their leases expire in the summer, because that’s the season when they moved into their current houses, condos, or apartments.?

This is especially true with college students, particularly those who moved to a new city or neighborhood in the?summer, before college classes start.

NerdWallet.com analyzed home sales in the 50 most populated U.S. metro city areas using two years of data from Realtor.com, discovering two key findings that work to a buyer’s advantage: 1) Sale prices begin to drop in fall; and 2) Home sale prices are typically lowest in winter. “Market conditions during the fall and winter overall lend to great prices,” says Julie Haley. “Many...sellers will drop prices after the spring and summer seasons end, just trying to get their property sold with the given fiscal year.

Sale Prices Begin to Drop in Fall. While home sale prices don’t usually drop dramatically as summer turns into autumn, the final sale prices do take a significant and noticeable drip. According to NerdWallet.com and Realtor.com, home sale prices dropped from summer to fall an average of 2.96%, which equates to $8,300 on the median home.

Home Sale Prices Are Typically Lowest in Winter. Many buyers are averse to the idea of buying a home in the colder months, but if you can hold off until January or February (generally not very active months in the housing market), homes can cost 8.45% less, on average, as compared to summertime. Of the 50 metro areas analyzed by NerdWallet. com, 29 had the lowest home sale prices in January, while 19 had the cheapest prices in February.

“Sellers are often encouraged to wait until spring to list their homes,” according to an article on Nationwide, “and those who keep their properties on the market through fall and winter may be more willing to negotiate a deal.” But because of the reasons outlined above as to why buyers tend to prefer to shop and buy in spring and summer, they often miss out on the savings that could be theirs if they were to hold out until winter. As a buyer, you need to learn how to take advantage of lower prices in fall and winter!

Research Pricing Trends Do some research into recent pricing trends in your area. You can go online to look at statistics, or talk to your agent about pricing trends and whether they match seasonal recommendations. This extra information will help you determine whether buying in the fall or winter is the right decision for you, because the bottom line is that you want to find the right house for the right price. A good agent will help you figure this out, especially if you have a hard time understanding pricing trends or don’t have the time to do enough thorough research.

Spring Instead? Spring is generally considered the hottest, most active season in real estate, and while you might not get the best price for the home you want, you will definitely have more homes to choose from. Historically, sales in the months of May, June, July, and August account for 40% of the year’s total home-selling volume. But regardless of what time of year you choose to search for and purchase your home, you need to move quickly when you find a home that you think could be “the one” for you.

How Can I Help? Were you thinking about purchasing a new (or your first!) home, but you were planning to wait until spring or summer to start looking? The market will be saturated in the warmer months, and you might just miss out on the home of your dreams.?

If you’re looking for a dedicated agent to help you purchase your next home, look no further.?Contact me TODAY!