Sometimes you do not have the luxury of deciding when to buy a home. Circumstances can arise that require you to relocate quickly, such as a new job or an urgent family situation.
Other times, however, you have some control over the timing of your move. If so, you can benefit from timing your purchase to when it will be the most advantageous. The Street offers some suggestions to help you recognize a good time to buy.
Inventory is a term for the number of houses available on the market. When the inventory is high, it means there are a lot of houses available. This means that sellers must compete with each other in order to attract buyers. One way of competing with other sellers is by listing the property at a lower price.
Low interest rates
If you are willing and able to pay cash for your home, the interest rate will not affect you. However, most people have to take out a mortgage. If you time your purchase to coincide with a low interest rate, it can save you thousands of dollars over the life of your loan. Interest rates can change unpredictably, so ask if your lender will allow you to lock in your rate for you while you look at houses. Otherwise, it could go up before you complete the sale.
As with other industries, the real estate market is susceptible to seasonal fluctuations. There is a busy season and an off-season. The busy season is in late summer, while the off-season is early in the year. As is often the case, prices are better during the off-season than the busy season.