Financial Fundamentals Blog

The Best and Worst Times to Purchase a Home

No one wants to overpay for a home. But even with a great deal, purchasing a home is most likely one of the biggest purchases you’ll make. Utilizing tips to help you save is always a good idea, but there’s more to consider. Here are some helpful hints for trying to secure an advantage when purchasing your dream home.

When is the Best Time to Buy a House?
One way to position yourself for a great deal is to pay attention to the timing of the market in your area. There are two factors to consider when timing your home purchase: market factors and your personal life factors. Market factors are things like interest rates and whether you are shopping in a buyer’s market or a seller’s market.

Interest rates can fluctuate with little notice. So let 7 17 Credit Union help. Our rate watch notifies you when rates change. To sign up or to learn more, visit

A buyer’s market is great for home buyers. There are lots of homes for sale, and sellers are usually willing to drop their prices or make other concessions to get their home sold. In a seller’s market, the home sellers have more power.

The personal life factors that can impact the timing of your home purchase include:

  • Your financial situation: Do you have the income and credit score needed to qualify for the loan you want? Do you have a down payment saved? Can you afford other expenses associated with homeownership, like upkeep and property taxes?
  • Your desired lifestyle: Do you have the free time for home maintenance? How soon do you want to purchase a new home?

All of these factors play a role in home buying, and while you may not be able to control all of them, you can control the time of year you search for and buy a new home.

How Seasonal Supply and Demand in the Housing Market Impacts You
Unfortunately, there is no perfect time that includes everything that home buyers want. Summer and winter are two very different home buying seasons, and each has its own advantages and disadvantages.
Supply and demand in the housing market can be very seasonal. Spring and summer bring longer days, warmer weather and more houses for sale. While you may think that warmer weather would encourage better deals, it’s actually the opposite. The huge demand for houses in the spring and summer result in a more competitive, higher-demand market than at other times of the year.

In the fall and winter, there are less homes on the market, and even fewer buyers. The weather, holidays and busy family schedules make moving during these seasons unattractive. There is little inventory, but even less of a demand. Buyers will often lower their asking prices in order to sell.

Best and Worst Months to buy a Home
While there’s no perfect time or date to purchase a home, you can get specific about the best and worst time to buy. Since the winter months can be tough, the best time to purchase a home is January. The least favorable months are May and June, since most people are looking to buy and move when the weather is nice.

January is beneficial because it’s usually a mini buyer’s market. By January, homes for sale have typically been on the market for over three months, so sellers are ready to make a deal. May and June are least favorable because homes sell very quickly and at a high median sales price.

The Right Time to Begin House Hunting
The best time to begin house hunting is unique for each potential buyer. Talk to your real estate agent about a house hunting plan for your family. Don’t forget to keep these other considerations in mind:

  • First-time buyers need to consider their financial goals before setting a timeline for purchasing a home. If you’re on a tight budget, start looking in the fall with the hopes of a January closing date.
  • Seasoned buyers should consider hunting in the spring and summer, when supply is high and there’s more to choose from. Prices may not be at their lowest, but you’re more likely to find something that offers your specific, must-have home features.
  • If you need to sell you current home before buying your next one, you may want to list your current home in late spring to capitalize on the June rush. That means you’ll also have to join the rush or make alternative plans, like a rent-back agreement while you house hunt.

Making Your Move: Timing is Everything
Choosing the right home is a big decision, and there’s no way to completely control or beat the market. However, understanding seasonal swings and being patient can results in savings. If you want to be sure you’re ready when your dream home hits the market, 7 17 Credit Union’s Mortgage Loan Consultants can help. For more information, or to set up a meeting with one of our consultants, visit


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