The worst month to buy a home due to its 12.8% average seller premium is May, according to ATTOM. On the other hand, November has an average premium of 6.3% meaning there is less competition, therefore sellers are more willing to negotiate prices.
The best time to purchase a home will depend on seasonality, market trends, preferred location, and inventory levels. Look at the following factors to determine when you should buy a home:
● Seasonality. Most experts recommend avoiding buying property during seasonal peaks, such as in May, because this can lead to higher prices. It’s the reason why some people like buying homes when the demand is lower than usual, such as in November.
● Market trends. Markets are constantly changing based on supply/demand dynamics within each city’s local economy and overall economic growth trends. Keep tabs on national averages along with regional trends.
● Local inventory levels. A high supply of homes at a desired location will make it easier for buyers to find a good option for a decent price. When inventory levels are high, there is less competition, and you can negotiate more effectively with sellers.
Let’s stop wondering and start making some steps toward buying an ideal place at the right time.
Utilise Web Search Results to Compare Home Buying Times Across Markets
The internet is one of the best tools when it comes to home search. You can easily find property for sale in Dubai or other cities, as well as info on home buying times across markets and cities using Google or Bing.
For example, now the US market experiencing the lowest number of home sales in the past five months, according to TradingEconomics. It means that the demand is low, and you can negotiate a better deal. You will also see that property prices have dropped in the first quarter of 2023 if you look at the EU property market. It means you might want to enjoy property there at a lower price now.
However, before using online resources for your research, make sure you evaluate their quality and credibility by considering:
● Who is providing this information?
● Is it from an unbiased source?
● How long has this person or organisation been providing this type of information?
● What kind of experience do they have working in the industry?
● Did they conduct surveys among current homebuyers?
Here are some tips you can use to leverage online search in your favour:
● Check out the median home price for the area.
● Compare that number to your current market’s median price. If it’s higher, then you’ll probably have a longer buying process in store for you.
● Investigate how much inventory has been added over time by looking at historical data. It’s best to work only with reliable resources that were recommended to you by friends and have real reviews online.
Use Market Indicators and Statistics to Identify the Best Time
Some statistics and indicators can help you identify the best time to purchase. They include:
● Supply. The number of houses available in a certain area.
● Demand. The number of people who want to purchase homes in your area at any given time.
● Price. The average cost of homes sold in your area over time.
● Price per square foot. This indicator can help you compare prices for different houses in the same area so that you can pick a more profitable option.
● Home sales volumes (current annual rate).
● Change in prices during each quarter/year (price index).
You can find those indicators on websites such as Trulia or Zillow. Calculate the absorption rate to see how well the houses are selling in a certain market. If there are more homes than buyers in a given area, then it may be a good time for you to evaluate available options and buy the best one.
Leverage Online Platforms to Analyse Potential Properties for Sale
It’s crucial to understand why you might want to use online tools:
● websites provide free information and pictures of the property that are for sale;
● you can use various search filters such as price range search;
● they allow you to save houses you liked in the favourites section, so you can compare them later.
Analysing your options online will help ensure that the property is priced correctly compared with similar homes in the area. It will also help you pick the best option available on the market right now.
Follow Best Practices to Close the Deal in Future
There are best practices for negotiating and closing the deal for buying a home at the best time. Here are some tips:
1. Make sure you’re ready for all contingencies. You don’t want to be caught off guard by hidden details or surprises that could affect your ability to close on time or negotiate effectively. Get everything in writing before sending over an offer.
2. Stay flexible and prepared for last-minute changes such as increased interest rates or unexpected repairs after inspection.
3. Get pre-approved before starting your search. By getting your finances right and pre-qualified, you can show sellers that you are serious about buying a house within their price range.
You can close the deal at the best time and ensure that your hard work pays off by following those tips.
To Sum Up
The right time to buy a house will depend on several factors, such as seasonality, market trends, and local supply. If you look at the statistics, spring and summer are a good time to buy a house.
However, each location will have its best time, so you should monitor the trends in that area. You have to gather your finances, do research, and get your priorities straight before contacting sellers or real estate agents!
