When is a good time to buy a home?

When is a good time to buy?

I get this question all the time. The answer will always be 5, 10,15, 20 years ago. We all hear “I remember when a mortgage payment for $500 a month in the Bay Area now it’s $3k plus or I remember when my rent was only $350 a month for a 2 bedroom”. Yes it will always be less years ago. The question is do you want to continue paying someone else’s mortgage or your own? Whatever your answer is that is fine as long as you sit and consider the pros and cons.

1. Early in the Year

The calendar is a good barometer for the best time to buy a house.

In general, prices are less expensive at the end of the year, especially in December. Primarily, that’s because the inventory that’s on the market comes from owners who have to sell, and are more willing to negotiate.

That could mean an owner whose company is transferring him or her to another state, and the owner must move fast. Or, the homeowner is hard up for cash, and can’t afford to wait until the traditionally busy spring home selling season.

The takeaway on the late-year calendar issue is this – people who are selling their home in November and December, in the midst of the holiday season, are often selling because they have to. Buyers can take advantage of that scenario and cut a better deal on a home price later in the year.

Waiting until January and February can work in the home buyer’s favor, as well.

Data shows that U.S. home prices cost about 8.4% less in the first two months of the year than they do in July and August, in the midst of the busy summer selling season. That scenario also falls in the “have to sell” as opposed to “want to sell” home seller equation.

When Inventories Are High

Another great time to buy a home is when there are plenty of homes available on the market, and home sellers need to be price competitive to sell their homes and get them off the market.

Usually home inventories are heaviest in the spring and summer selling seasons, where plenty of families put their homes on the market because foot traffic is heavy and because buyers want to move in before Labor Day, and get their kids ready for school.

Data shows that the highest month for home-for-sale inventories is May, followed by April and June. The months with the lowest inventories are December, November and January, in that order.

Again, you might be able to strike a great deal in the winter months, as owners are more likely to have to sell their homes. But the data shows there are more homes on the market, and more competition on price, in the spring and summer seasons.

The bottom line is to weigh out the pros and cons for your individual situation because all of us have different situations. If you would like assistance in helping you make the decision feel free to reach out to me so we can chat 510.689.3859. I can assist with your home purchase around the world.

Information was from : https://www.thestreet.com/personal-finance/best-time-to-buy-home-14831868

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