Each season has its advantages and disadvantages — it all depends on what your main goal is when it comes to your real estate search. Spring is generally viewed as the best time of the year to buy a house if you want to choose from a large inventory. Homes also tend to present better in the warmer months – plants are in bloom, and lawns are green, so this is a popular time for sellers to put their houses on the market. You'll see plenty of new listings throughout the springtime. Spring is also the busiest time to search for a home, so be prepared for some friendly competition and the potential for a bidding war.
Late summer to early fall is also considered one of the best times of the year to buy a house because the competition levels cool down following the busy spring and early summer months. Fewer families shop for a house around this time of year as well — they prefer to close on a house earlier to avoid disrupting the school year.
However, if you're looking for a bargain, you're likely to find the lowest prices in the winter. There are fewer buyers over the winter months, so many sellers take their homes off the market for the season with the plan to start fresh in the spring. Sellers who keep their listing up through winter are often looking to sell quickly, increasing your chance of purchasing a house below the asking price. Note that the seasonal differences in the real estate market may vary depending on where you live.
FAQs
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.
Will 2024 be a better time to buy a house? ›
Mortgage rates are expected to come down in 2024, and inventory and home sales are likely to increase. Homebuyers and sellers can also expect prices to continue to rise, albeit at a slower clip than the past couple of years.
What month are home prices lowest? ›
What Is the Cheapest Month to Buy a House? Home prices are usually at their lowest in winter. In fact, according to the 12-month period in the table above, home prices were at their lowest in January 2023—at a median of $361,200.
Should I buy a house now or wait for a recession? ›
If your credit score is strong, your employment is stable and you have enough savings to cover a down payment and closing costs, buying now might still be smart. If your personal finances are not ideal at the moment, or if home values in your area are on the decline, it might be better to wait.
Do home prices drop in a recession? ›
What happens to house prices in a recession? While the cost of financing a home increases when interest rates are on the rise, home prices themselves may actually decline. “Usually, during a recession or periods of higher interest rates, demand slows and values of homes come down,” says Miller.
What time of year are mortgage rates lowest? ›
Historically, mortgage rates tend to be lowest during the winter months, particularly in December and January. However, rates can vary significantly from year to year, so it's essential to keep an eye on current real estate market conditions.
What is the most expensive month to buy a house? ›
As for the worst time to buy a home, spring is generally the most expensive season. May is the worst month for finding a deal, with a premium of 10.5% over market value, according to ATTOM.
What month do most people buy a house? ›
Buying a house in spring or summer
Late spring and early summer are the busiest and most competitive time of year for the real estate market. There's usually more inventory listed for sale than other times of year, and home prices are steeper to reflect the increased demand.
What is the slowest month for home sales? ›
Typically, winter time is the slowest of the year to sell a property, specifically November, December, and January. However, there are some exceptions because there are several conditions that affect the housing market.
Will housing be cheaper if the market crashes? ›
During a housing market crash, the value of a home decreases. You will find sellers that are eager to reduce their asking prices. Sellers may be more motivated to bargain on price or make concessions to buyers.
Cash. Cash is an important asset when it comes to a recession. After all, if you do end up in a situation where you need to pull from your assets, it helps to have a dedicated emergency fund to fall back on, especially if you experience a layoff.
Will interest rates go down in 2024? ›
Mortgage rates could fall in 2024, but that's not a given. The Mortgage Bankers Association projects a 6.5% rate by the end of the year, while Fannie Mae predicts 2024 will end with rates at 7%.
What time of year are house prices highest? ›
Generally speaking, late spring and summer are the peak real estate season, when there's the most inventory to choose from — but also the most competition, and the highest prices. If affordability is a concern, you're likely to score a better deal during the winter months.
What season is best for buying a house? ›
This may give you more room to negotiate when you do make an offer on a house. Fall is one of the best seasons to negotiate a more desirable price because sellers often take their home off the market prior to winter. Buying a home in the fall can be ideal for home buyers trying to stretch their budget.
Is it better to buy a house at the end of the year or beginning? ›
Save on Taxes
If you buy a home before the end of the year and close by December 31, you can lower your tax liability with mortgage-related deductions. These deductions include property taxes, mortgage interest, and interest costs.
