Timing isn’t everything, but it is a huge factor when it comes to buying a house. If you are searching for “best time to buy a house“, Mk Design & Build is here to help!
When Is The Best Time To Buy A House?
Of course, supply and demand play huge roles in determining the best time of year to purchase a home. You may want a ton of housing options without the competition, but typically, this will not be the case. It is possible to strike a good balance without wasting too much energy on the housing market. Here is a look at the current market trends.
Buying A House In Winter
Across the U.S., the housing market tends to slow down during the winter. Only a state like Arizona will actually see an increase in home sales during these months due to its unique climate. In the majority of the country, people are less motivated to move or sell during the harsh winter conditions. Both inventory and demand are typically low at this point of the year. On the plus side, prices will be lower during the winter and you’re less likely to have to enter into a bidding war. Unfortunately, you may not have the full view of available homes unless you wait a few months.
Buying A House In Spring
Usually, houses begin to flood the market starting in the spring. In fact, Zillow reports that April tends to offer the most options for prospective home buyers. Keep in mind that many other home buyers will be entering the market at this time too, so expect more competition than you would see in the winter months. You’ll want to prepare any necessary mortgage application materials ahead of time.
Buying A House In Summer
The barrage of homebuying that begins in the spring usually bleeds into the summer. High inventory and lots of competition will be seen during the warmer months. While many homes will come available, it is recommended not to wait if you find a home you like within your budget. Due to the intense competition on the homebuying market, it is possible your dream home could be gone before you know it.
Buying A House In Fall
Home experts believe the best time to buy a home is in the fall. Most families will have already settled into new homes with the school year about to start. Yet, the number of available properties remains high from the amount of homes listed during the summer. While it is typical for a buyer to find a better deal during this time, it is not a guarantee. The factors impacting real estate prices can depend on the local market, of course.
Is Now A Good Time Buy A House?
While the Covid-19 pandemic has had a large impact on the housing market for two years straight, it has yet to cause the market to hit rock bottom. A shrinkage in housing supply usually causes the market to drop, but this simply hasn’t happened yet. Home purchases are actually going up, thanks in large part to declining mortgage rates across the country. The ability to lock in low rates can save homeowners thousands over the life of the mortgage.
The decrease in interest rates led to a plethora of new buyers hitting the market. The supply of homes didn’t keep up with the demand, necessarily. This means most buyers currently on the market are facing lots of stiff competition. Nowadays, you need to act fast if you wish to purchase a property.
Factors Affecting Buying A House
Yes, the season will play a factor in this process, but there are a few other important variables. Let’s take a look at a couple other factors for prospective buyers.
The biggest factor determining when and if you should buy a house is the current market in your area. As we’ve discussed, the real estate market can fluctuate with the seasons, but also depending on current interest rates. For instance, mortgage rates generally follow the Federal Reserve’s interest rate. The Fed lowered their rate immediately following the outbreak of Covid-19, meaning mortgage rates dropped, as well.
Even when prices are low in the housing market, you will need to consider how mortgage rates will affect the total cost over the life of the loan. Apparent savings courtesy of an affordable home may quickly be offset due to a high interest rate.
You can never overstate how important it is to be ready for this type of investment. You’ll want to make sure all debts are paid off and your credit is in good shape before buying a new home. Finding the perfect home size and location are vital, as well.
When Is The Best Time To Buy A House In Arizona?
One way to ensure the home buying process is as simple as possible is to shop at the right time. Now, of course, this can be a tricky thing to figure out. Arizona, unlike most other housing markets, has varying housing prices and mortgage rates by the month. Housing prices in Arizona were at their lowest level in the month of May during 2021, for example. Homes were listed at an average of $40,000 less during May than any other point this year. November was actually the month with the highest housing prices in the valley of the sun.
Arizona’s real estate market is truly unlike any other market in the country due to its harsh summers and mild winters. Most homebuyers do find better deals in the summer because the area is less desirable at that point in the season. While most of the country has lower prices during the winter, the exact opposite is true in Arizona. Currently, Arizona is categorized as a seller’s market, meaning you’ll likely face a lot of competition when bidding for a new home.
The best time to buy will really depend on both the market and your specific situation as potential homebuyers. The first step towards home ownership is getting preapproved by a licensed lender. Even after you have been preapproved, it’s still possible to find lower rates that can pay dividends over the life of the loan. Look around at as many options as possible.
MK Design And Build In Arizona
MK Design And Build, located in Mesa, Arizona, specializes in residential construction, providing clients with state-of-the-art technology combined with cost-effective building methods. MK offers a variety of styles and designs for you to use as a starting point in your home building journey. With an extensive library of existing plans to choose from, we’ve organized them into 4 Series to facilitate the shopping experience: Classic, Vintage, Contemporary and Craftsman. Contact MK Design and Build right here!