In most areas, the market is slowing down a bit as August approaches. Traditionally, the end of August gives you a great chance to find deals, because sellers. Traditionally, late August gives you a great chance to find deals, as sellers lower prices even more. Don't rule out homes that have languished on the market during the spring and summer sales seasons.
There are a number of reasons why a home may not have sold. It may be that a buyer has backed out. In any case, a home that has been on the market for an extended period can end up being a great find. Based on seasonal trends, the best time to buy a home is from October to February due to low demand due to the holiday season.
These months offer better home prices for buyers and more room for negotiation with the seller. On the other hand, the worst time to buy a home is during the spring season through early summer, when housing inventory is high, driving up demand and home prices. In addition to seasonality, other economic factors, such as mortgage rates, can also affect your ability to buy a home. General historical data shows that the best month to buy a home is August or September.
It is useful to analyze the real estate cycle as a whole to understand why. The housing market is usually quite slow in winter. Due to the cold and frost, homeowners often wait until spring to prepare their homes for sale. Shoppers aren't inspired to attend open days during hibernation either.
In general, whether renting or buying is best for you depends largely on your specific circumstances. The Federal Housing Administration formula, used by many lenders, recommends allocating no more than 31 percent of your monthly income to paying for housing. This figure will change depending on the amount of your debt. Buyers with no other debt can allocate up to 40 percent of their monthly income to housing.
But remember that the rest of your budget will have to be spent on heating, water, electricity, routine home maintenance and food. Keep in mind that there are fewer homes for sale in the cold winter months and during the busy holiday season, so the selection of homes for sale will be limited. If August and September are the best months to buy a home, then, in theory, the best season to buy a home is late summer. Fall may be a good time to accelerate the purchase of a home, as prices begin to fall due to the popularity of summer and there is more housing inventory than in the coming winter months.
