When is the best time of the year to buy a home? And what about the worst?
From a pricing perspective the spring is the worst time of year to buy a home, unfortunately it is also the best time of year when it comes to the number of homes a buyer will have to choose from. Market activity tends to be at it’s highest in the spring and the market gets flooded with new inventory.
Sellers who list their homes in the spring are typically those attempting to time the market rather than those who need to sell due to some unexpected life event such as a job relocation, an addition to the family, a divorce, etc. These sellers often have lofty expectations and inflated opinions of their home’s value however, this is often the time of year when demand is the highest and the time of year when home values tend to peak. in fact, April is the worst month of the year for buyers to close on a home. RealtyTrac reports that since 2000, homes in April were purchased at an average premium of 1.2 percent above estimated market value — bad for buyers, but great for sellers.
As the days and months pass sellers grow tired of the effort that goes into selling a home including the inconvenience of preparing the home for showings and the need to leave for these events. Eventually frustration and fatigue set in which in turn can encourage sellers to make price reductions and to consider lower offers.
So if April is the worst time of year to buy a home, when is the best time of year to buy a home? Homes usually sell at their lowest prices in the month of October.
Of the 2.7 million sales closed in October over the last 15 years, the average sales price was 2.6 percent below the average estimated full market value at the time of sale, this according to a study by RealtyTrac.
Within the month of October, the magic day was that of the 8, which was the day buyers were able to secure the best deals. RealtyTrac said that housing deals that closed Oct. 8 sold for an average of 10.8 percent below estimated market value.
February, December and January are the next best months to try to score a bargain deal on a house. If the idea of buying a home and moving this time of year doesn’t seem entirely appealing, consider the additional Perks of Buying a Home in the Fall / Winter.
The start of the school year and the holidays influence our buyer decisions and serve as a strategic indicator of the most advantageous times for buyers to land their lowest priced deal.
Besides school schedules, the holidays and colder weather coming into play, all four major professional sports are in season, with football dominating Sundays, baseball entering the playoffs and basketball and hockey beginning their seasons. It could be that sports fans have no desire to relocate their TVs and sofas during this month.
This what the numbers say. And while this information is interesting, it doesn’t mean all that much to the average buyer. That’s because people typically buy a home when they find the place that best suits them, regardless of the date on the calendar.
What the study did statistically prove is that homes are indeed most discounted in the fall and winter, when buyers have fewer competitors. While some buyers do focus on the price, most buyers tend to focus on the house. During the fall and winter seasons, sales activity declines not only due to the fact traffic slows, but also because there’s simply less inventory and fewer options for buyers to choose from.
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please give us a call and we’d be happy to assist you!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley 43209 Columbus 43201 43206 43214 43215 Delaware 43015 Downtown Dublin 43016 43017 Gahanna 43219 43230 Grandview Heights 43212 Galena 43021 Hilliard 43026 Lewis Center 43035 New Albany 43054 Pickerington 43147 Polaris Powell 43065 Upper Arlington 43220 43221 Westerville 43081 43082 Worthington 43235