Does the time of year actually matter when buying a house? The short answer: yes and no.

Seasonality tends to affect factors such as inventory (the number of homes for sale) and purchase price. During spring, inventory is plentiful, but competition among buyers may cause prices to rise. By contrast, home prices may be lower during winter, but inventory is usually limited. And moving in may be more difficult, depending on the weather.

Also, the best time to purchase a home isn’t always when inventory is highest or when prices are the lowest. These are important factors to consider, but broader market conditions and your personal needs also play a significant role.

The upshot? You can find houses during all seasons. Determining the best time to jump into homeownership means understanding the pros and cons of buying a house at different times – and deciding when it’s best for you.

Let’s look at how the time of year affects home buying, plus other factors to consider beyond seasonality. From there, we’ll help you determine your best time to buy a home.

Buying A House In The Winter

Winter is usually the cheapest time of year to purchase a home. Sellers are often motivated, which automatically translates into an advantage to you. Most people suspend their listings from around Thanksgiving to the New Year because they assume buyers are scarce. Sellers who do list at that time usually want to sell as soon as possible. They may even be more willing to throw in extra perks such as appliances and window treatments.]

Potentially lower purchase prices aren’t the only savings. Real estate agents want to make sales during the slow periods and are more open to negotiating closing costs and commissions.

However, while prices are cheaper during the winter, inventory is much more limited. It may not be a good time to buy a house unless you’re willing to keep an open mind and work with a limited selection.

In general, there are fewer open houses in the winter months. Winter may also mean that you may have to navigate house hunting and open houses in less-than-ideal weather, depending on which part of the country you live in. Even if snowstorms aren’t common in your area, you may not see a property in full bloom. You may pass on a home that’s beautiful in spring. It's also hard to gauge the amount of natural light when the days are short.

Your inspector may have difficulty determining the condition of the roof if it’s covered in snow, and they might not be able to test the AC unit because of the cold weather.

Despite winter home-searching challenges, the closing process tends to be speedier. Lenders process fewer applications during this season. Real estate professionals are usually more accessible, and inspectors have less backlog.

Buying A House In The Spring

Spring is a hot time of year for the real estate market. The warm weather and end of the school year tend to draw out sellers and buyers in droves, which creates a healthy marketplace. That’s both good and bad if you’re looking for a new home. Choices abound, but so does your competition. You may even find yourself in a bidding war.

One of the reasons sales inventory tends to increase when temperatures rise is because houses show better. Trees and flowers are in bloom, and grass turns green again. Houses look much better in the spring sunlight.

There’s also pent-up demand. Sellers and buyers can often sit it out during the winter months. Sellers generally price their homes high during the spring, and then bidding wars and competitive backup offers tend to break out, which can make for a challenging environment in which to purchase a home.

Home prices may be top dollar but buying in the spring is popular for a lot of reasons. Families want to get settled before a new school year, there’s more time to shop for a home together and the weather makes it an overall more enjoyable experience.

If you commit to buying in the spring, prepare to move quickly.

The Bottom Line

When buying a house, timing your purchase can feel all-important. However, each season brings with it both positive and negative factors when shopping for a home, including inventory, competition and prices. Ultimately, though, the best time to buy a house – and get a mortgage – comes down to your own readiness, financial and otherwise.

One of the most important steps you can take to make sure you’re ready to begin house hunting is to get preapproved for a mortgage. Starting the home buying process with a preapproval in hand will make you more confident in your financial situation and more aware of how much house you can afford. It’ll also make you a more attractive buyer when you see a home you want to pounce on. Learn more about preapproval so you can start your journey today.

Source: Rocket Mortgage

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