When’s the Best Time to Buy?
You’ve saved up for a down payment, your credit report is sparkling, you’ve scoured Zillow for weeks, and are about to hit “submit” for loan pre-approval. Then it hits you: is this really the right time to buy?
The season, month, week or even day you buy can impact the home-buying process, including available inventory to how much you’ll pay. As much as real estate is all about “location, location, location”, timing plays an important role, as well.
Best Season to Buy a House
It’s no secret that the real estate market is affected by seasonality. Summertime tends to be the peak for the home-buying market, while winter is generally slower. Here’s why: in the summer, the weather’s nicer, meaning more looky-loos are out and about. And kids are out of school, so a move won’t disrupt their attendance.
With an active market in the summer months, you’ll have more homes to choose from—and so will the other out-and-about looky-loos. If you’re looking at desirable properties in a hot market, you can expect stiff competition. Be prepared to give your best offer up front and don’t expect any seller concessions.
But summertime competition isn’t ubiquitous: while there are more buyers looking during peak season, the amount of competition usually depends on which area of town you’re shopping in. Desirable neighborhoods or homes within walking distance to downtown, for example, will likely have more competition than other areas.
Best Month to Buy a House
If you’re looking for that sweet spot between peak season’s high inventory and winter’s more attractive prices, consider buying in August or September. This time of year, inventory is still fairly abundant, but the quieter market gives you more room to negotiate.
If it’s simply the best price you’re after and location isn’t as important, research shows that home prices are generally at their lowest in February. Additional insights show home prices peak around November before falling slightly in January. Interestingly, March is often the most expensive month to buy.
While the market has seasonal predictability, its nuances change year to year. Even with Boulder’s robust, stable real estate market, fluctuations in the larger economy can affect or interrupt its usual rhythm.
Best Week to Buy a House
As the saying goes, “The best time to buy a home is five years ago.” But since time travel isn’t an option, we’re left to wonder: is it even possible to know the ideal week to buy a home? Well, yes—it’s possible.
Stats show that 2019’s best week to purchase a home was the first week of fall. Why? Analysts say this particular week was the height of the sweet spot mentioned earlier, when high-stakes competition waned but inventory was still relatively high.
Best Day to Buy a House
Since 2000, RealtyTrac, a real estate information company, has been tracking the sales of single-family homes and condos. According to their 20 years of data, the best weekday to make an offer is Monday. Out of the millions of homes and condos sold over the last 20 years, buyers that contracted on a Monday realized an average discount of 2.3 percent below the list price. Friday came in at a close second with an average discount of 2.0 percent. That sounds like the perfect cure for the Monday blues.
The Best Time of All to Buy a House
In general, the best time to buy is typically late summer or early fall. Around this time, there tends to be less competition than peak times, but still a healthy inventory. In the winter months, while there are fewer homes on the market (and looky-loos out and about), buyers often have more negotiating power.
But what’s the actual right time to buy a house? When you’re financially ready, when you can handle the responsibility of owning a home, and when you’re comfortable enough with the current market conditions.
When you’re ready to make an entrance into the market as a buyer, remember to always team up with a savvy local agent. (Wink.)