The Best Time Of Year To Buy A House (2024)

FAQs

What is the cheapest month to buy a house? ›

Buying A House In The Fall

Outside of winter, a fall purchase can be ideal for cash-strapped home buyers. Once summer ends, sellers get more motivated. They usually lower their prices and provide an opportunity to get a deal. As is the case with winter, there's also less inventory during the fall.

The window between late fall and early winter is the best time for buyers on a budget. Keep in mind, fewer homes are for sale in the cold winter months and around the busy holiday season, so the selection of for-sale homes will be limited.

Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

Specifically, the end of May and June typically see the most home sales. However, summer is often cited as the most expensive time to buy a house — with prices potentially as much as 10% higher. This is partly because many families want to purchase a house before their children start a new school year.

With mortgage rates declining faster than expected, home prices are likely to remain mostly flat throughout 2024. This will be good news for buyers who have been waiting on the sidelines for a good time to enter the market.

It typically takes anywhere from four weeks at the low end to six months (or more) to shop for and close on a house. But it can be quicker if you make a strong offer right away in a fast-moving market or slower if you have a hard time finding just the right place or keep getting outbid.

Will house prices go down in a recession? While the cost of financing a home typically increases when interest rates are on the rise, home prices themselves may actually decline. “Usually, during a recession or periods of higher interest rates, demand slows and values of homes come down,” says Miller.

Buying a house in December? Be prepared for sellers to be in a more giving mood. It is the most wonderful time of the year, after all. It's a time when folks are more likely to make compromises or throw in some extras just to make the season extra merry and bright.

Thanks to the Equal Credit Opportunity Act, there is no age limit to taking out a mortgage. As long as you can meet the financial requirements, you're allowed to take out a loan at any time. To take out a mortgage over 60 you will need to be able to prove your ability to repay the loan.

Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.

Will rates go down in 2023? ›

“We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.

“[W]ith the rate of inflation decelerating rates should gently decline over the course of 2023.” Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast. National Association of Realtors (NAR).

Sellers can net thousands of dollars more if they sell during the peak months of May, June and July versus the two slowest months of the year, October and December, according to a 2022 report by ATTOM Data Solutions.

“Listing a property on Thursday and Friday makes the listing look fresh,” says San Diego Realtor Jessica Nguyen of Homesmart Realty West. “Sellers don't lose any market time by listing a property on either of these days.”

These organizations predict that mortgage rates will decline through the first quarter of 2024. Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point.

Key Takeaways. The best age to buy is when you can comfortably afford the payments, tackle any unexpected repairs, and live in the home long enough to cover the costs of buying and selling a home. Legally, you must be at least 18 in most states to buy a home.

Age doesn't matter. Counterintuitive as it may sound, your loan application for a mortgage to be repaid over 30 years looks the same to lenders whether you are 90 years old or 40.

In general, it's best to buy when you have your eye on the horizon and you're thinking long-term. Experts largely agree that you shouldn't own unless you plan on staying in the home for at least five years. That's because, thanks to their high start-up costs, houses don't usually make great short-term investments.

How long should you save before buying a house? ›

It's a good idea to have at least 3-6 months of living expenses saved up in this cash reserve. Emergency funds are really important to help prevent you from defaulting on your mortgage payments.

As prices become unsustainable and interest rates rise, purchasers withdraw. Borrowers are discouraged from taking out loans when interest rates rise. On the other side, house construction will be affected as well; costs will rise, and the market supply of housing will shrink as a result.

Recessions over the last half a century have ranged from 18 months to just two months. Federal Reserve economists believe the next downturn may stick around for longer than usual.

In addition, during recessions, people with access to cash are in a better position to take advantage of investment opportunities that can significantly improve their finances long-term.

During the winter months, there are fewer real estate transactions than in spring and summer. Fewer transactions mean mortgage lenders have fewer loans to process, title and escrow companies have fewer closings to process, and home inspectors have fewer inspections.

Mortgage Rate Premia (BPS) by Month of Origination

Since home buying and refinancing is seasonal, there is less mortgage origination in winter months, so it could be that lenders must lower their rates to stay competitive and attract business.

You Might Get a Better Deal

Most sellers are more motivated to offload a home on the market during the winter months, when home sales traditionally slow down. So you'll be able to talk the seller down more than you would in May or June, when sellers can usually command higher prices for their real estate.

There's no age limit for getting or refinancing a mortgage. Thanks to the Equal Credit Opportunity Act, seniors have the right to fair and equal treatment from mortgage lenders.

If you haven't renovated your home in the past 30 years or so, it won't show well when you put it on the market. In other words, it won't get the same price as a similar home that's been maintained and updated.

Summary: maximum age limits for mortgages

Many lenders impose an age cap at 65 - 70, but will allow the mortgage to continue into retirement if affordability is sufficient. Lender choices become more limited, but some will cap at age 75 and a handful up to 80 if eligibility criteria are met.

What is the best date to close on a house? ›

If you need to be occupying your home by a certain date to save on rent, it's a much better deal to close at the end of the previous month (for example, January 30) instead of the beginning of the current month (February 1).

Average home price in the United States: $436,800

The median home sales price is $436,800 as of the first quarter of 2023. That's a 32% increase from 2020, when the median was $329,000.

Southern California home prices close out 2008 down 35% - Los Angeles Times.

Since the start of 2022, the Fed has hiked rates 10 times to combat rising inflation. As of May 2023, the federal funds rate ranges from 5.00% to 5.25%. If this prediction is correct, it won't be surprising to see some of the best high-yield savings accounts offering rates exceeding 4%.

Mortgage Interest Rate Projected Forecast 2024. According to Longforecast, the 30 Year Mortgage Rate will continue to rise further in 2024. The 30 Year Mortgage Rate forecast at the end of the year is projected to be 13.9%.

Fannie Mae expects the 30-year fixed to ease to around 6.1% in the second quarter of 2023, before falling to 5.9% in the third quarter and 5.7% in Q4. And it gets even better than that. By the end of 2024, they expect the 30-year fixed to average 5.2%.

Freddie Mac also forecasts that the 30-year fixed-rate mortgage will average 6.4% in 2023, with an average of 6.2% in the fourth quarter.

Predictions for home prices

Overall, in five years, he expects prices to have appreciated a total of 15–25 percent. McBride predicts home prices will average low- to mid-single-digit annual appreciation over the next five years.

Most collapsed house sales happen before exchange. The reason for this is simple, once you've exchanged contracts there is the risk of losing large amounts of money if a sale falls through.

What day do most houses go on sale? ›

Thursday is the most popular day for agents to debut new listings, and homes listed on that day apparently sell fastest, according to Redfin, a real estate brokerage.

Thousands of sellers have been in the exact position you are in right now and the first question they always have is: “Will this house sell for less because it is empty.” The short answer is yes, empty houses do take longer to sell than furnished, occupied or staged homes.

The Lowest Home Prices Are Typically in January

Median sales prices are more affordable between September and February than in other months of the year. For example, January 2022 had a median price of $377,454, which peaked at $432,812 in May 2022.

After your home is listed, your real estate agent can schedule showings and greet potential buyers when they visit the property. Although the average home sits on the market for about 22 days, it could take more time or less before you accept an offer. The days on market can also depend on when you list your home.

Spring is when most houses go on the market.

The best day of the week to close on a home purchase is Thursday, when sellers typically offer discounts around 3% of the list price, according to 2022 research from Zillow. Zillow prefaces that listing prices are only slightly higher Monday through Wednesday.

When to Start Looking for a House. As a general guideline, it's advised to start house hunting five to six months before you want to move in. This might seem like a long time, but there's plenty to do. Now, remember, depending on various factors, including the state of the market's, the process may take longer.

Generally, home prices are lowest in January because demand is low, inventory is low and fewer buyers are looking for homes. While January might be the best month to get the lowest price on a home, you pick from a smaller selection of homes.

During a traditional recession, the Fed will usually lower interest rates. This creates an incentive for people to spend money and stimulate the economy. It also typically leads to more affordable mortgage rates, which leads to more opportunity for homebuyers.

Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.

Is it better to buy a house at the end of the month? ›

Although there are a few complicating factors to consider, for most home buyers, closing later will save hundreds of dollars. The end of the month is the busiest time for closing for a reason – it may feel like a hassle to close at “rush hour,” but your budget will thank you.

Interest rates typically fall once the economy is in a recession, as the Fed attempts to spur growth. Refinancing debt and making more significant purchases are ways to take advantage of lower interest rates.

The median price for a U.S. home sold during the fourth quarter of 2008 fell to $180,100, down from $205,700 during the last quarter of 2007. Prices fell by a record 9.5% in 2008, to $197,100, compared to $217,900 in 2007. In comparison, median home prices dipped a mere 1.6% between 2006 and 2007.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

Chief Economist at First American Financial Corp, Mark Fleming, says an interest rate drop may not happen for several months. "Possibly in 2024, but it will depend on the Fed's decisions about raising rates in the second half of the year," says Fleming.

Since mortgages are paid in arrears and on the first of the month, your first mortgage payment typically comes at the start of the new month after you've lived in your new home for 30 days. This means that if you close on your house on May 25, your first payment is due July 1.