For those who are new to the game or those who have had a few house purchases under their belt, the decision to buy a house is a very big one. One of the main reasons it is such a big decision is the ‘stress’ on your finances. Now, buying a house in some people's eyes is all about location location location. But, have you ever thought that as well as viewing in your perfect area the time of the year that you plan on buying could also make your experience that much better. How so? Choosing the correct time to buy a house could significantly reduce the amount that you pay.
So what is the best time of year to buy a house?
The best time of year to buy a house is surprisingly during the school holidays. So this includes the months of July, August, December and the beginning of January. This is because during these months a large section of the people who would be looking to buy houses are off doing other things. Like vacationing with their families, looking after their kids etc. Meaning that the housing market takes a huge knock and the value of houses have to drop. There is always a price increase of potential houses to buy during the fall and spring markets which is definitely a time to avoid purchasing a property as you could be looking at a 10%-15% increase in the prices of houses. And, if you looking at a house worth a couple hundred thousand dollars if not more, you can imagine that is a very significant increase. It is a good thing to note that if you are not just looking for a home to live in but for an invested property it has been researched that the best time to do this is during the winter seasons.
Why are there such large increases of prices?
The increase in the prices of the houses are because of those who are falling back into their normal day to day routines. As kids go back to school and people have a bit more free time on their hands they end up flooding the property market, and the influx of potential buyers means that sellers can increase the value of their properties because there are that many more people to potentially want to buy it. The competition gets very competitive.
Ultimately when the best time to buy a property is, comes down to you, your needs and if you have one then your family's needs. Assuming that in your eyes the best time of year would mean the time of year where the properties are at their cheapest then you definitely need to be looking at the months that most people or families will be spending time at home or with their families. Learn the cycle of inflation and deflation and work it to your advantage.