What to expect from a home inspection
A home inspection is part of the mortgage process. Learn about average costs, what home inspectors look for and how to read a home inspection report.
Taylor Sansano
The real estate market warms with the seasons
Maybe you’ve spent several years building your credit or saving for a down payment, and you’re finally ready to buy your dream home. But is it the right time? The housing market tends to peak in the summer and cool down in the winter — understanding the market trends helps ensure you get a good price.
When it comes to homebuying, seasons matter, particularly in regions with rough weather. While extreme housing markets can disrupt the usual ebb and flow, there are some predictable pros and cons to buying a home at various times of the year.
No matter when you decide to buy, remember that the most important thing is finding the right home for you and your family. Still, it can help to know how seasonality affects the housing market.
When the weather warms up, so does the real estate market. Spring is typically considered a great time to buy: Inventory is often higher, and you can get a better feel for how active the neighborhood is.
The housing market is most competitive in the spring and summer, when there are higher prices and limited options.
You'll also benefit from buying in the spring if you're looking for a newly built home — this is when many builders release their new models. However, because there’s bound to be more activity in the market, you may find that prices are slightly higher and competition is a bit stiffer than during slower times of the year.
Summer is the peak season for buying a house. Curb appeal is at its highest, and you can get a better feel for a neighborhood by taking a walk around the block when neighbors are out and about.
If you have children, you also might prefer buying during this time so you can settle in before the start of the school year. Again, though, the high demand during the warmer months likely means higher prices and more competition.
The real estate market tends to slow down as the year starts coming to a close. This can be a good time to get in while competition isn’t so bad — sellers who've not been able to find a buyer are more likely to be flexible on price. Plus, with fewer real estate transactions happening in general, you'll also have a greater chance of negotiating with mortgage lenders for more favorable financing terms.
If the thought of moving in the winter sends shivers down your spine, you're not alone. While many Americans don’t think of winter as the best time to buy a house, there are some advantages to purchasing in the colder months.
When you check out homes in the winter, you'll get to see houses when they're not quite as dressed up as they tend to be in the spring and summer (which means a more realistic glimpse into your potential future). And because winter is the slowest time for real estate, you’re likely to have more bargaining power with sellers and lenders alike.
If you're looking to buy a home, it's helpful to stay up on the market conditions in your area. You may hear real estate agents or newscasters referring to seller’s and buyer’s markets — these terms refer to who’s likely to have the upper hand in a real estate transaction. The difference between a seller's and buyer's market comes down to supply and demand, or the current inventory of homes for sale versus the number of buyers looking to purchase.
If you’re ready to buy a home, consider the type of market you’re in. A buyer’s market usually means more options and better prices.
As of April 2022, we’re in the midst of a seller's market. It is possible to buy a home right now, but you'll want to be ready: Make sure your finances are solid, take the time to get preapproved and be prepared to offer at least the asking price. You may need to move quickly on properties that interest you and be willing to pay a bit more than the asking price.
A seller's market is when there are more people house hunting than there are homes for sale. In this type of market, prices are driven up by buyers competing for properties.
In a seller’s market, buyers regularly face "bidding wars," where multiple potential buyers make increasing offers to win the property. As a result, homes in seller’s markets often sell for well above the asking price and often above the appraised value. Investors and others are currently purchasing homes for cash sight unseen, making it harder for ordinary buyers.
A buyer’s market, on the other hand, is when there are more homes for sale than there are buyers looking to purchase. In this type of market, the lack of competition for homes may drive prices down and lead to concessions (like down payment assistance) to attract buyers. If you're purchasing in a buyer’s market, you'll likely have more negotiating power, and you may be able to get a property below the asking price.
Rates are effective 03/20/2023 and are subject to change without notice. APR shown is provided by a partner of ConsumerAffairs.
Product | APR | |
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6.918%-0.1% | Get Rates | |
The APR shown of 6.918% is available for a 30-year fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. | ||
6.583%0.0% | Get Rates | |
The APR shown of 6.583% is available for a 20-year fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. | ||
5.895%0.02% | Get Rates | |
The APR shown of 5.895% is available for a 15-year fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. |
5.731%0.0% | Get Rates | |
The APR shown of 5.731% is available for a 30-year VA fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. | ||
6.936%0.14% | Get Rates | |
The APR shown of 6.936% is available for a 30-year FHA fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. |
Product | APR | |
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6.03%0.03% | Get Rates | |
The APR shown of 6.030% is available for a 15-year fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. | ||
6.332%0.0% | Get Rates | |
The APR shown of 6.332% is available for a 15-year VA fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. |
6.529%0.0% | Get Rates | |
The APR shown of 6.529% is available for a 20-year fixed rate loan in the amount of $200,000 for consumers with loan-to-value of at least 80%. | ||
7.444%0.0% | Get Rates | |
The initial APR shown of 7.444% is available for a 5-year adjustable rate mortgage in the amount of $200,000 for consumers with loan-to-value of at least 80%. APR may be subject to change per loan terms. |
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If you're thinking about buying a house, there are a few things to consider first. Having a solid financial foundation is crucial. This can help you qualify for the loan, demonstrating you’re able to afford the monthly mortgage payments. You'll also want to consider your long-term plans. Some things to think about before buying a home:
As with all major financial decisions, the best time to buy a house depends on your personal needs and goals. Broad market factors and considerations like the time of year will affect the homebuying process, however.
As of spring 2022, we're in a seller's market. Inventory is scarce, and competition is high. Many homes are selling above the listing price (and over the appraised value). If you want to buy right now, be prepared to move quickly and be flexible on your must-haves. Just make sure the price is fair — as a reviewer from Texas put it, “COVID has made the market a seller's market, however, buyers should not be taken advantage of because of such.”
The best thing you can do is stay informed about the market conditions in your area and be prepared to act when you find the home you love.
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