Many people see the summer months as the ideal time to buy a house, and in many ways it is; the weather is nice, you don’t have to worry about moving in the middle of the school year, and there are plenty of listings to tour. Summer is definitely the BUSIEST home-buying season but despite the upsides, it is NOT the best time to buy a new home if you want to get great value on your new investment. House hunting in the cold may not be as fun, but here are 3 reasons why the winter is the BEST time to purchase a new home.
- YOU WILL PAY LESS FOR YOUR HOME IN THE WINTER
There is a wealth of information from a variety of sources about the seasonality of home prices. Without getting too much into the weeds, the conclusion is that homes are priced higher in the summer and become cheaper in the winter. The graph below shows the average US home price over the last 12 months (Oct 2017 to Oct 2018). It is pretty hard to ignore the big spike in prices during the summer.
The following graph shows the monthly variation of home prices from a historical viewpoint (Feb 2000 to April 2011). This is the same story, but it shows that this past year wasn’t a fluke; the seasonality trend holds constant year-over-year. There are a lot of reasons this pricing pattern repeats itself, but the simple fact is houses sell for less in the winter.
- THERE IS LESS COMPETITION IN THE WINTER AND SELLERS ARE MOTIVATED
Nobody wants to move in the winter and as a result, there are far fewer people making offers on homes. During the summer of 2018 almost every transaction we worked on was a multiple offer situation. Many of our buyers got rejected over and over and decided to stop looking. In the winter there is less competition and you are more likely to have your offer accepted. People trying to sell their home in the winter are more likely to accept negotiated offers because they usually need to get the house sold quickly. It is no secret that homes sell for more in the summer; sellers that list in the winter are likely under some kind of pressure and may be more willing to deal which makes for a better experience for the buyers.
- YOU GET TO SEE THE HOME UNDER HARSH CONDITIONS
Winters can be harsh in Utah; knowing that a house is well equipped to handle the elements is important. It would be frustrating to buy a house in the summer only to find out in the winter that the roof is leaky. It would also stink to kick on the furnace for the first time in the winter and find out that it doesn’t heat the home properly. Every house looks good in the bright, natural summer sunlight, but a house shows more of its character in less than ideal conditions.
In summary, there may be some drawbacks to buying in the winter, but the pros outweigh the cons. In the winter you will pay less, have a less competitive environment, and find a home that you have seen in rough conditions. If you have a goal to buy a home in 2019 don’t wait until the spring or summer! Call us to get pre-approved and start your house hunt today.
Bliss Sawyer NMLS #239608 Ph:385-539-7692
Tyson Cook NMLS #1737882 Ph: 801-913-0594