The real estate market is cyclical, moving up and down. Still, seasonal variations affect buyers and sellers alike.
The spring is the most common time to buy a home, as most home sales occur between April and July. Buyers like buying at this time because they have more vacation time, better weather, and don't have to take their kids out of school should they change school districts. This is good news from an inventory standpoint, but bad from a price perspective. Sellers who have just listed their homes in the spring will be less willing to negotiate the price than sellers who have withstood less favorable conditions. Increased competition means buyers risk losing a home if they do not act quickly.
Contrarily, buyers can generally expect to find less inventory but better prices in the fall, winter, and summer (the "off" season), when competition is reduced.
Realtor.com suggests buying a home between Thanksgiving and New Years, as home prices are typically at a 12-month low in December. Also during the colder months, some mortgage lenders forgo some of their fees in order to attract customers, who in turn get good mortgage deals.
Realtor.com also lists early spring as a good time to buy, just as sellers are listing their properties and determining an asking price.
Interest rates and related economic factors are also important to consider when starting your home search. Ultimately, though, the best time to buy varies from person to person, based on personal factors. Beware: waiting for the "perfect" time to buy a home may result in a lost opportunity, given the unpredictable timing of the real estate market.
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