What Time Would It Be Best to Buy a House

7 Min Read | Sep 24, 2021

When buying a house, wouldn't it be awesome if yous had the widest option and the lowest prices to cull from—and everything was lined up perfectly for when yous were prepare to move?

That'due south the dream. The trouble is, it'south not easy to fourth dimension when home prices will be depression and the number of homes for sale (or inventory) will be high. Even if you could, you'd have to be in the right place in your ever-irresolute season of life and financial situation.

To help y'all feel confident in finding the best time to buy your house, we'll walk you through typical housing market patterns and prove yous how to determine your own fiscal readiness. That way, you'll be set up for success as y'all accept on one of the biggest purchases of your life.

Ready? Allow's do this!

What Is the Best Month to Buy a Business firm?

If we're going "past the book," the all-time month to purchase a house is typically considered Baronial or September—when home prices get lower and inventory is still high. But keep in mind, no one can predict real estate trends with 100% accuracy. And so never permit what month it is make or break your domicile-buying decision—only your financial situation can truly make up one's mind the right time for you.

See how much house you can afford with our complimentary mortgage calculator!

With that said, in 2019, the all-time time to buy a house was probably around September—when existing home prices had a pretty overnice driblet of $7,000 and inventory was only down ten,000 homes. Compare that to buyers who waited until October—dwelling house prices only went downward $ane,000 and inventory dropped by 50,000 homes!^one

To see these trends for yourself, check out the chart below:

Month (2019)	Dwelling house Price (Median)	Inventory (Millions)
January	$249,000	ane.59
February	$250,000	ane.63
March	$260,000	i.67
April	$267,000	1.83
May	$278,000	1.91
June	$285,000	1.92
July	$280,000	1.ninety
August	$279,000	1.83
September	$272,000	1.82
Oct	$271,000	i.77
Nov	$271,000	ane.64
December	$275,000	ane.39
January (2020)	$266,000	1.42ⁱⁱ

What Is the Cheapest Month to Buy a House?

Home prices are usually at their lowest in winter. January kicked off 2022 with the everyman median home price of the twelvemonth at $249,000. And then, after rising all year, prices saw their greatest fall from December 2022 to January 2020—a drop of $ix,000! So if the best time to buy for you means getting the lowest toll, be sure to slip on your warm woolen mittens.

Keep in heed, wintertime is usually hibernation fourth dimension for real estate—fewer houses are for sale during the busy holiday flavour (not to mention some regions accept the cold and snow to bargain with). Final yr, the number of homes for sale saw its greatest drop from November to December—losing 250,000 homes from the market!

Super low inventory could make it harder to find a home that has all the features you desire. But no worries—who really needs a jacuzzi in the chief bathroom anyhow?

What Month Practise Near Houses Continue the Market?

Spring is when well-nigh houses keep the market. In 2019, the national amount of homes for auction shot upwardly an additional 160,000 from March to April—the fastest charge per unit of growth all year. That number kept growing each calendar month and ended in June with the highest inventory of the year at one.92 million abode listings! So, if a jacuzzi and an outdoor fire pit is a must for yous, spring is the time to store.

On the downside, spring is also the busiest firm-hunting season, so competition and prices will likely be at their highest. Last year, home prices shot up $11,000 from April to May and reached their highest point of the twelvemonth in June at $285,000. But if y'all tin budget for it, it's often worth shopping when at that place'south an abundance of homes on the market to choose from.

Is a Recession a Good Time to Buy a House?

A recession isn't necessarily a good or bad time to purchase a house—once more, it really depends on your financial state of affairs. During a recession, the economy stops growing due to less activity related to buying and selling. Instead of things somewhen hitting an upward swing, the economic system shrinks for near six months—and the negative furnishings from this downturn tin terminal a lot longer.

If a recession puts you at loftier risk of losing your job or your finances are out of whack, then it's definitely a bad time to purchase a business firm. But if your income is stable and you're killin' it with your finances, buying a house during a recession could actually land y'all a sweetness bargain—since prices are generally lower.

But Really . . . The Best Time to Buy Depends on You lot

One more than fourth dimension for the people in the back: Certain, you can try timing your home purchase just correct to find the widest selection or pay the lowest toll. But really, the all-time time to purchase is when your finances are in guild.

Hither are the biggest signs yous're ready to purchase a firm:

Y'all take naught debt and a big fatty emergency fund. The biggest expenses that make it the mode of people saving for a home purchase are all debt-related: educatee loans (51%), credit card debt (45%) and machine loans (38%).³ Dump the debt and your income will exist freed upward to help with your dwelling house adventure!

Your house payment won't be more than than 25% of your take-home pay. This 25% limit includes principal, involvement, property taxes, homeowner's insurance and, if your down payment is lower than 20%, private mortgage insurance (PMI). Plus, don't forget to consider homeowners association (HOA) fees—if your new home is function of an HOA.

You've saved up a 10–xx% down payment. Taking out a mortgage with a super low or no down payment will accept y'all paying so much extra in interest and fees and go along you in debt for decades. Sure, information technology's not pop to slow downward and relieve up a bigger downwards payment. Just information technology'll protect you from a lifetime of stress and money fights in the long run.

You know how to choose the right mortgage. The overall lowest toll mortgage is a xv-yr fixed-rate conventional loan. Beware of fancy mortgage products like ARM, FHA, VA, USDA and even a 30-year loan. They're designed to help people who really aren't financially ready to buy a house get one anyway—and then pay through the nose for it over the next few decades in the form of actress involvement and fees.

You lot can handle homeownership costs. Well-nigh homeowners complete an average of nearly seven home maintenance projects in a yr, costing a full of $1,100.⁴ Sadly, there'due south no more landlord to fix things for you. Besides, moving into a bigger infinite unremarkably means your utility nib will exist bigger besides—so make certain yous tin can budget for these things.

Yous plan on staying put for a while. All the up-forepart costs and piece of work you'd put into getting a business firm probably won't be worth the small amount of value you'd proceeds by living in it for only a short amount of time. But if yous love your city and programme to stay put for at to the lowest degree several years, ownership a house is a smashing investment!

If each of those statements sounds like yous—congrats!—now could be the best time for you to buy a house. Become the brawl rolling by getting preapproved for the right mortgage.

Find Your Best Time to Buy a Business firm With Help From an Amanuensis

If you want practiced advice on whether now is the best time for you to buy, work with an experienced real estate agent who knows your market like the back of their hand. For a quick and piece of cake way to observe the meridian-rated agents in your area, try our free Endorsed Local Providers (ELP) programme. We only recommend agents who share our mission to serve you with excellence in crushing your financial goals.

Find a top-rated real estate amanuensis in your area!

Ramsey Solutions

About the writer

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, abound their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Printing, as well every bit two syndicated radio shows and ten podcasts, which have over 17 million weekly listeners.