When is the Best Time To Buy a House?
March 25th, 2024
When is the Best Time To Buy a House?
Are you on the fence about when you should buy your next house? Here is everything you need to know about the best time to buy a home.
The most challenging part of the home-buying process is deciding when to start. Unless you urgently need to move, choosing the best time to buy a house can be extremely difficult, especially if you are a first-time home buyer.
There were 662,000 homes sold across the United States in just February 2024 alone. This is over 15,000 more homes sold than this time last year, meaning now may be the perfect time to buy a home. Whether you are planning to move for a new job, change of scenery, start school, or any other reason, it is essential that you understand when it is the best time to buy a house.
Ideally, you should buy a home when the real estate inventory is high, but there is a shortage of interested home buyers. This would mean that the housing market is not competitive, and you could buy a home for less than the asking price. However, the housing market is extremely hard to predict because many changing factors influence it.
Nevertheless, let's look at what the best time to buy a house is, important things to consider, home-buying tips, and more important information you should know as a home buyer.
Keep reading to learn all about the best time to buy a house and how to know if you are ready.
Chapters
1. When is the Best Time To Buy a House?
On average, March and June are the best months to buy a home. This is primarily due to low competition and competitive prices, which means you can possibly buy a home below the asking price.
August is when there are the most homes on the market, so if you require a lot of options, then this is the best time to look for a home. Typically, the month of November has the lowest of home buyers, meaning little competition and lower home prices. Overall, spring is the best time to sell a home, meaning that as a buyer, you will see many homes on the market, but be prepared to pay at or over the asking price during this time.
Let's look at what you can expect during each season when buying a home:
- Spring: High house inventory, but high in competition and prices.
- Summer: Peak season, meaning a highly competitive housing market but a much larger housing inventory.
- Fall: Home prices start to lower, and you may have a higher ability to negotiate prices before winter.
- Winter: Low inventory and low home prices.
Looking at the North Carolina housing market, in February 2024, home prices were up 5.6% compared to 2023. However, there are 4.3% more homes for sale and 3.4% more homes sold last month compared to last year. Remember that February is not typically the best time to buy a house, but these statistics mean the housing market is settling, and now is a good time to buy a home in North Carolina.
2. Buying a House in a Seller's Market versus a Buyer's Market
In real estate, you will hear the words seller's market and buyer's market. You will need to understand what these words mean and how they will impact your home buying and selling process.
A seller's market refers to a time when market conditions and housing demand exceed the supply. In a seller's market, the seller has the upper hand because there are more home buyers than homes on the market.
During a seller's market, homes will sell quickly and receive multiple offers. As a buyer, you may want to avoid buying a home during a seller's market. However, if you are looking for a quick sale, then this might be the best time for you to buy a home.
A buyer's market is the exact opposite; the demand exceeds the supply, and the buyer has the upper hand. Prices will stay low as a result, and buyers will have more options to choose from and more room to negotiate. During this time, homes will stay on the market longer, which may be a disadvantage if you need to move urgently.
As of now, mortgage rates are low in N.C., but experts expect to see a lot more buyers and sellers entering the market. According to the North Carolina Housing Finance Agency, currently, the housing market is categorized as a seller's market because of low inventory. However, there are many up-and-coming neighborhoods and plenty of new construction that can tip the scale for buyers.
3. Things to Consider When Buying a Home
There are countless things to consider when buying a home. Depending on your personal preferences, goals, and state in life, some may have a heavier impact on you than others. Here are some of the top things home buyers need to consider to set you up for home-buying success.
Location
Location is always one of the top things to consider when buying a home. If there is one thing, a buyer should never sacrifice on it's location. Location will have a large impact not only on the home price but also on your day-to-day life. Start your home search by zeroing down on one or many locations, and from there, you can learn what constitutes a great deal, a good deal, and a lousy deal.
Home Size
When buying a home, you need to remember that you will most likely live in this home for years, and your family may change. Ensure you are buying a home that will accommodate your family size or lifestyle over the time you plan on staying in that house. This means buying a home with the right amount of bedrooms or bathrooms. You should also consider if the home has the potential to add any spaces or renovations in the future.
Price
Last but definitely not least is the price. Another factor that you should never sacrifice when buying a home. Consider your down payment and how much you can afford monthly towards your expenses. You should also have savings for emergencies and hidden costs you might not expect.
4. How Do You Know if Now is the Best Time for You to Buy a House?
Whether you are currently a renter or a homeowner looking for a new home, you still may be asking yourself if now is the best time to buy a home. Here are a couple of rules of thumb to ensure you are ready to buy a home.
You have a healthy credit score.
A healthy credit score is the key to obtaining a mortgage. Borrowers can have a credit score as low as 500 to qualify for some home loans, but this leads to higher down payments and rates. If you have a high credit score now, you can qualify for much better interest rates and loan terms.
You can afford the down payment and closing costs.
Before buying a home, you should always ensure that you can afford it. A good way to test this is to ensure you have enough money saved for the down payment and closing costs.
The downpayment is typically a percentage of the overall home price. Most of the time, the closing costs are negotiable but stay around 2% to 5% of the property's sale price. Make sure to save extra money for deposits, inspections, maintenance, and unexpected costs.
You know what you are looking for
The best way to know if now is a good time to buy a house is if you know what you want. Sometimes, it is as simple as being financially stable and ready for the move. There will be many decisions to be made while searching for a home, but if you have a good idea of the size, shape, style, or location, then you are more likely to choose a home you'll be happy in. Consider making a list of your home must-haves and nice-to-haves. This way, you can sort out what is really important to you and narrow down the search.
5. Home Buying Tips
The home-buying process is extensive, and you'll need to make many compromises along the way. In order to achieve home-buying success, follow these simple tips.
- Know your credit score.
- Get comfortable with making compromises.
- Plan ahead
- Stay flexible
- Find a trusted real estate agent
- Educate yourself on the home-buying process
- Be persistent
- Search comparable homes
- Don't forget to check the market for foreclosed homes.
Methodology
We used information and data from several different sources, as well as our own data, to determine the best time to buy a house. Most of the data was sourced from the following sources:
FAQ: When is the Best Time To Buy a House?
Here are some commonly asked questions about when is the best time to buy a house.
What is the cheapest month to buy a house?
On average, November and December are the best times to buy a home at the lowest price possible. This is because there won't be as many homes to choose from, and you'll face less competition. If the market is less competitive, then you may be able to purchase a home below the asking price.
What is the most expensive month to buy a house?
May is typically the most expensive month to buy a home because of increased demand. Most people are on the house hunt during April, May, and June, which leads to higher competition and higher home prices.
How much can you negotiate on a home?
If you are in a buyer's market, you could offer as much as 20% under the asking price. However, the majority of the time, you will only be able to negotiate off about 1%- 10% below the asking price.
What month do houses sell the most?
This depends greatly on the location, current market, and more factors, but typically, homes sell the best between April and October. This is because the demand outweighs supply, and home prices can increase and sell fast.
How early should I start house hunting?
Typically, home buyers will start looking for a house about ten weeks out from move-in day. Although you can start looking whenever the time is right for you, make sure to track the local market to stay up to date with new listings. It is recommended to research the average number of days a new listing stays on the market so you can better manage your time during the home search.
When is the Best Time To Buy a House? - The Bottom Line
The bottom line is that the best time to buy a home is whenever you think you are ready. There are times throughout the year when buying a home is easier, or you can buy a home for less than the asking price. However, that won't matter if you aren't mentally or financially ready to buy a house.
So far, 2024 has been a great time to invest in real estate. There are plenty of options available in the Triangle, and the housing market is affordable due to decreased interest rates.
Experts predict that the housing market will stabilize across the country this year. Keep in mind that the housing market is extremely hard to predict, meaning if it is good now and you are ready, then you should start the home-buying process as soon as possible.
As you are searching for your next home in Raleigh, NC, which is one of the fastest-growing areas in the country with many beautiful homes for sale, you'll have to act fast if you want to buy your next home in one of Raleigh's best neighborhoods.
Before you buy your next home in the Triangle, feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect home. We know that buying a home can be overwhelming, so make sure you are prepared beforehand.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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