Are you on the hunt for a house? Before you take the leap there are a few things to keep to take into consideration. One of the most important things that you need to deeply reflect on is when to buy a house. Most people focus solely on location and price when buying a house. However, timing is also equally important and plays a pivotal role in the home buying process. Because buying a home constitutes a massive investment, it makes sense to explore ways to reduce the cost and save wherever you can. With this in mind, the time you choose to buy a home can have a huge impact on the home’s sale price. In addition, the timing will also influence the mortgage rates you end up paying. So, when is the best time to buy a house?
Playing close attention to the property market in your area is a smart way to position yourself to benefit from great deals. When it comes to buying a house some of the things that could have a bearing on the timing of the purchase include personal and market factors. Here are a few things you need to keep in mind that will help you figure out when to buy a house.
Personal factors
1. Financial situation
In the first place, if your finances are a mess then you will not be able to afford a house. Moreover, if your credit rating, as well as your credit history, are poor, then you will not qualify for a mortgage. In addition, you will also require savings for a down payment. Furthermore, additional funds will be required for upkeep, maintenance, and tax payments.
2. Lifestyle
Does your lifestyle accord you the time and resources required for home ownership? Your lifestyle plus your current financial position will have a huge bearing on the timing of your purchase.
Market factors
You should keenly observe the fluctuations of interest rates in your local housing market. Typically when interests rates are lower it translates into lower mortgage payments and the opposite is true. It is also important to know if you’re in a buyer’s market or a seller’s market. A buyer’s market will suit you best. This is because there will be more supply than demand for houses. This usually leads sellers to reduce their property prices in order to make the sale. Subsequently, this places buyers in a position to negotiate and get better deals that enable them to save money. A buyer’s market would be an ideal time for you to buy a house. Under a seller’s market, there is more demand than supply for houses. This means sellers will typically inflate property prices and are not willing to negotiate or make concessions. Buyers are forced to buy property at high prices, hence these are not ideal market conditions for property procurement.
Seasonal factors
Another very important consideration is the actual time of the year to deem best to buy a house. However, each season has different elements that impact the timing of a purchase differently. Moreover, the market forces of supply and demand can also be quite seasonal. There tend to be more property listings during the warmer seasons. This means that supply increases and the market will suit buyers. But supply and demand are extremely volatile. The increase in the supply of properties in warm seasons leads to lower property prices. This, in turn, attracts more buyers, thus increasing demand to a point of surpassing supply leading to increased property prices. As such, be vigilant with your observation of market fluctuations and pay attention to property prices in order to determine when it is best to buy.
The best time to buy a home will vary greatly from one individual to another. However, if your financial affairs are in order and the market conditions are favorable, then you can make massive savings. Remember to keep an eye on interest rates, market forces, and your present financial situation to assess if it the right time to buy.
