When is the perfect time for a First-Time Home Buyer to Enter the Market?
Like any first-time home buyer, you’re probably overwhelmed at the very prospect of finding and actually procuring your first home. Purchasing a home could end up being the biggest investment you’ll ever make, so it’s crucial to take your time and consider plenty of options. Many factors come into play, but one that tends to weigh especially heavily on home buyers’ minds is the right time of year to buy. When it comes to having as many options as possible, choosing the right season for your search can certainly help and that’s where Choice Home Loans can help.
When it comes to housing market activity in general, autumn tends to be the busiest time of year. That’s when the most buyers are out there looking for homes, so it tends to be when the most people list them for sale. According to a study by RPData, 26.6 percent of home sales happen during the autumn. 25.4 percent occur in the spring, 25.3 percent happen during the winter, and 22.7 percent happen during the summer. In other words, while autumn technically has the most activity, spring and winter are close runners-up – especially in warmer states.
Spring is typically considered to be a buyer’s market, which means that home sellers generally need to make concessions in order to move their properties quickly. However, you can’t always count on this rule of thumb. Market conditions, including local supply and demand and current mortgage interest rates, can drastically affect the number of homes that are available at any given time. If you have the luxury of waiting until conditions are ideal, then, it’s well worth it to work closely with a real estate professional who has his or her finger on the pulse of the local market.
The Best Time is when You’re Ready
While buying a home during one season may be better than buying during another, the most important thing of all is to look for a house when you’re truly ready. That’s especially important for a first-time home buyer. From having excellent credit to amassing a large down payment, being as prepared as possible will make the experience all the better. You’ll enjoy a more competitive interest rate and will qualify for more favourable terms in general. Also, if you’re currently renting, you’ll need to be out of your lease before getting serious about buying your first home. If you have to choose a time of year to buy, though, spring is probably ideal.