If you’re in the market for a new home, you may want to time your purchase to a certain time in the year. Doing so can lead to more negotiation power and help you secure a competitive purchase price. Plus, you may have more options to choose from.
Best Time of Year To Buy a House
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.
— 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.
The Best Months To Buy a House Ranked
| Month | Number of sales | Median price | Premium |
|---|---|---|---|
|
October
|
3,515,328
|
$222,004
|
3.30%
|
|
November
|
3,028,121
|
$225,000
|
3.70%
|
|
December
|
3,206,084
|
$225,000
|
3.70%
|
|
January
|
2,440,874
|
$198,157
|
4.10%
|
|
September
|
3,505,874
|
$225,000
|
5.10%
|
|
August
|
3,891,711
|
$226,500
|
5.30%
|
|
February
|
2,366,350
|
$200,000
|
5.80%
|
|
March
|
3,123,442
|
$210,000
|
7.00%
|
|
July
|
3,896,532
|
$229,000
|
7.40%
|
|
June
|
3,932,078
|
$227,500
|
7.80%
|
|
April
|
3,261,709
|
$215,000
|
8.30%
|
|
May
|
3,560,639
|
$219,900
|
10.50%
|
The Best Days To Buy a House
Despite October’s overall discounts, the best single days of the year to buy still fall after Thanksgiving through the early days of the new year, according to ATTOM: Nov. 28 (1.1% premium), Jan. 9 (1.3%), Dec. 5 and 26 (1.5%) and Dec. 19 (1.9%).
The Worst Days To Buy a House
The housing market ordinarily speeds up around spring and chugs along into summer. Kids are out of school and people have time to shop around. Many families try to buy a home between May and August.
All of this translates into a lot of buyers competing for the same houses, which drives up prices and leads to more expensive real estate.
The worst days for buying, according to ATTOM’s analysis, are all in May: the 20th, 23rd and 27th all have premiums above 15%.
Steps To Buying a House
Now that you know the seasonal patterns for house-hunting, here’s a refresher on the best steps to take to get ready to buy:
- Assess how much debt you have, if any, and pay off anything you can. Then, check up on your credit profile to make sure there are not any errors.
- Take a look at your existing budget, and consider how it will change if you owned a home: will you have repair and maintenance costs? Property taxes?
- Figure out how much money you have for a down payment, and be prepared to document any money you get as gifts.
- Consider meeting with mortgage professionals—either lenders or mortgage brokers—or get preapproved on your own.
- Decide what kind of home you want, and where you want to live.
- Start keeping track of mortgage rates, which can fluctuate frequently.
What Homebuyers Should Do To Get the Best Price
Covid impacted nearly every aspect of our lives over the past two years, but one thing hasn’t changed: cost-conscious homebuyers will have to work hard to find deals.
Zonda data suggest there are some bargains, particularly in areas that got so hot during the pandemic that they may have become “a victim of their own success,” in Wolf’s words: Phoenix, Austin, Boise and Salt Lake City are a few.
Whether you’re interested in those areas or others, find a real estate agent who knows the area well, understands your goals and is willing to hustle during the hectic holiday season. This is key. If they’re distracted by the holidays, then you’re at a disadvantage. You want to find someone who is on the hunt for a house with you, regardless of the date.
Next, get your paperwork in order. This includes having a mortgage preapproval letter ready and your down payment lined up so that you can act fast if a house in your price window pops up.
Finally, be prepared for a sudden open house or private tour opportunity. Don’t put off viewing a new listing, otherwise someone else might scoop it up. If it hasn’t been listed and you have a chance to view it, this could be a golden opportunity to make an offer before anyone else sees it.
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Frequently Asked Questions (FAQs)
What is the lowest credit score you can have to buy a house?
Most lenders require a minimum credit score of 620 to qualify for a conventional mortgage, but the credit requirements for FHA Loans are more lenient when you make a qualifying down payment.
A 580 credit score is needed when you put at least 3.5% down for an FHA-insured mortgage. It’s also possible to qualify with a credit score from 500 to 579 when you can make a minimum 10% down payment.
How much money do you need to buy a house for the first time?
The down payment requirements vary depending on the type of mortgage, but range from 0% to 20%:
- Conventional loans. Lenders may only require an initial down payment between 3% and 5%. Putting down at least 20% lets you waive private mortgage insurance.
- FHA loans. A minimum 3.5% down payment is required If you have a credit score of 580 or higher, you’ll need to put down at least 3.5%. With a credit score between 500 and 579, you’ll have to make a 10% minimum down payment.
- VA loans. You don’t need to make a down payment as long as the sales price doesn’t exceed the home appraisal value.
- USDA loans. No down payment is required although you must live in an eligible rural area and have a qualifying income.
- Jumbo loans. Most lenders require a minimum 10% down payment but can require as much as 20% to 30%.
- Adjustable-rate mortgage. At a minimum, lenders usually require at least 3% to 5% but may require more.
Lenders and local governments offer a variety of first-time homebuyer loans and programs that can provide down payment assistance and help you qualify for affordable monthly payments.
How long is the process to buy a house?
It can take from one to six months to find a home for sale, get a mortgage and wait for the seller to accept your offer. The buying process is different for everyone and depends on how quickly you can find a house to buy. After submitting a successful offer, the mortgage closing process usually takes 30 to 45 days.
Getting a mortgage preapproval can expedite the buying process as sellers are often more willing to entertain your offer in a competitive market. Further, you’ll know how much house you can afford and your estimated monthly payment.
How long after bankruptcy can you buy a house?
The waiting period is usually two years but can be as long as four years after the discharge period for Chapter 7 and Chapter 13 bankruptcies. Extenuating circumstances may allow you to qualify sooner but additional lender requirements apply for all mortgage applications.
