The real estate market is a dynamic environment. Prices and inventory vary a lot depending on the timing of the year. If you decide to buy a house you have to prepare a strategy in order to avoid buying it at the same time as everyone else. If you donít, you will end up losing yourself in a bidding war and letting your dream house escape.
Letís compare the seasonality of the different regions in the United States to understand when and where it is the best timing to invest in a house is.
In the Midwest, sellers prefer to list their homes during the spring and the summer time because the demand is high so they can set their house at a higher price point. During winter times investors are fewer which means you can avoid a competitive war between buyers. They have more time to think it over and take a decision. Furthermore, sellers are motivated to sell their property during winter months because their house has probably been sitting on the market for some time and it is expensive to maintain it during the winter. Heating costs can be high. Usually, you will find bargain hunters looking for properties during the winter.
On the East coast, most of the sellers put their homes on the market in spring because buyers are out and around. During that period, there are more properties on the market but at the same time the prices are high because the demand is high. If you are just looking for a deal, itís better if you purchase your home during winter time, especially if you are looking for a second home. On the other hand if you are looking for your dream home it would be wiser to search for it during the spring since the inventory will be higher.
On the west coast the winter months are perfect to buy a house as well. The weather is still great so itís easier to go house hunting. The only negative side is that the inventory is lower but homebuyers still have enough choice.
In Miami, the best time to buy a house is in the late spring or in summer. The high season extends from December to April so thatís when a lot of buyers will be competing against your offers. Whereas at the end of the season, when the majority of buyers have left, thatís when you should start looking for bargains. Sellers tend to be desperate since their house has been sitting for a while on the market. The drawback is that the best properties have probably already sold.
As a conclusion, the best time of the year to buy nationwide is in winter. If we look at a full year, 27% of houses sell between November to February and 40% sell in between May to August. As we mentioned, Miami is the only exception to the rule.