Buying a home can be stressful, I know — but knowing when to buy can make it that much easier. Three things to consider when purchasing a new property include:
The best months to buy a house. Every real estate market is different, but most markets experience different times of the year when it’s easier, more convenient, or less expensive to buy a home.
The best time of year for the local market. This depends on market trends, the state of the economy, and the local job market. While this is dictated yearly, there can be minor economic changes throughout the year.
The best time for you. Of course, there’s no data or research on this — there aren’t any official market characteristics that can tell you when the best time to buy a house is for you personally. You should make a plan to buy when your finances line up for you to do so and when you have the time to make the move.
The best time to buy a house
So, when is the best time to buy a house? There are fewer options in the cooler months, usually in the fall and winter, but higher price flexibility. In the summer, when there are more options for buyers, there is less wiggle room for negotiation and usually a little more competition, resulting in a bidding war or offers well above the list price.
November is the best time price-wise if you’re looking for a deal. Most buyers are waiting for the spring to buy — usually between March and May. If you were to buy a home in November, it would probably be at a lower price than those you’ll find in March. Keep in mind that fewer homes will be listed in the late fall/winter months. Statistically, fewer homes are up for sale at this time of year, so the selection of homes will be limited.
For more options, April is generally the best time of year to buy, especially if you have room in your budget. Since April tends to see the most listings, buyers have more options.
August is a great month for selection and lower prices. August tends to have the most price cuts on the already listed homes, and the inventory levels tend to stay healthy. Price cuts tend to be the most common between July and September, and August listings are the most abundant nationwide. Peak inventory tends to fall between June and August.
When to buy a home in Redwood City
The most significant factor to consider when choosing when to buy your home is demand in California. The time of year directly correlates with the inventory of for-sale houses and the prices of those homes. California's general rule of thumb is that you are most likely to find the highest number of listed homes from April to June, which is pretty similar to the national statistics.
The best time to find reasonable listing prices in California is in April. Statistically
, prices are 11.5% lower than average during this time, which is in line with the national average.
The best time for housing inventory is in May. You’ll find about 13.2% more homes to choose from in May than during other times of the year.
If finances are a concern, December is the best time to find lower mortgage rates or interest rates. While December typically sees a decline in inventory, you can get a 2.88% interest for a 30-year mortgage if you can find a home that fits your needs. This is likely because there are so few houses listed at this time of year, but if you can find a property that you like and is appropriately priced, it’s worth a look.
California has been a seller’s market throughout 2021. More buyers are looking for homes than there are homes available. Because of the low inventory and the amount of competition from buyers, there is a high chance that home prices could be inflated. If you don’t have room in your budget to negotiate or to bid at a higher price, it’s a smart idea to wait until the competition eases.
Deciding when to buy is personal
While economic and market trends are undoubtedly some of the most important things to look at before buying a home, there are also personal factors that may sway your decision. Here are some things to consider before buying:
Are you financially ready?
If you buy a home you can’t yet afford, you could default on your mortgage in the future and ultimately lose your home. Timing is not only crucial for the real estate market, t’s vital for you as a homeowner. Don’t buy before you’re financially ready.
Has the home been thoroughly inspected?
Don’t buy a home before it has been thoroughly inspected. Buying a house that hasn’t been maintained, upgraded, or renovated can add even more stress and additional costs in the future, especially during the first few years of homeownership.
But don’t be too hasty. If you can wait it out and buy a home after it has been through renovations and inspections, do so. New construction can add money to the price tag and could take longer than you originally planned, but it’s better to be safe than sorry, and there is less risk involved if the home is brand-new.
If you’re considering making the move to Redwood City
, contact me today
to get started on your next real estate adventure.