Buying a house is likely to be one of the most significant milestones in your life. It’s important to get it right! So, when is the best time to buy a house? We’ve highlighted some important considerations to guide you on what to consider.
Is 2021 a good year to buy a house?
The COVID-19 pandemic has impacted all areas of the economy, including the housing market. However, measures such as the stamp duty holiday have helped to keep house prices stable. If you can take advantage of the holiday, this could be a good year to buy a house.
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As COVID-19 restrictions continue to ease, it’s likely that house prices will rise steadily in 2021.
When is the best time to buy a house?
The best time of the year is during the winter, but you might also want to consider times when there is an economic recession. House prices tend to fall during recessions – the most recent being the COVID-19 pandemic.
That said, though housing may become more affordable during times of recession, you might also be affected individually, limiting your spending power. Lenders are also stricter during recessions, meaning it can be challenging to secure a mortgage.
The most prudent way around this is budgeting your money, investing, saving and making the right money moves.
What is the cheapest month to buy a house?
As you would expect, houses in different localities and of different sizes and designs may have varying prices. Regardless, there are times when house pricing may drop significantly.
For example, during December and January, house prices might be lower. Sellers are aware that buyers may have other financial commitments and might lower prices to attract buyers. It’s a good idea to take advantage of such times.
As a rule, the housing market tends to slow during the winter months when people are less inclined to go house hunting. This can lead to lower house prices during the winter months to encourage buyers.
Also, consider the beginning of the school year in September. Sellers know that people’s attention will more than likely be focused on back-to-school matters and may lower house prices to attract buyers. It might be worth your time to consider September as a good month to buy a house.
What are the worst months to buy a home?
March and May are considered the worst months to buy a house. Most factors, from buyer availability to mild weather, increase interest in the market, leading to a rise in house prices. With a number of potential buyers, sellers don’t offer much room for bargaining during these months.
Though June marks the beginning of summer in the UK, it is still not a good month to buy a house. The weather is still favourable, and there are plenty of buyers and sellers in the market. It’s better to wait until late July and August. Sellers may lower their prices to attract buyers who might be busy planning for the summer holidays.
During Autumn, you might want to avoid the month of October. After the school year begins in September, house prices will be initially low but will increase in October when demand for houses increases slightly. Buyers may also be looking for a house before the winter begins.
In reality, the best time to buy a house will depend on your personal circumstances. House prices rise and fall based on varying factors throughout the year. However, it’s wise to note how the seasons, holidays, the beginning of the school year and economic recessions can affect house pricing.
If this is your first time buying a house, you might want to spend some quality time looking through the MyWalletHero mortgage guide.