Buying a home? These are the best times of year to act

If you're looking to buy a home in 2023, you'll probably notice some difficult conditions within the housing market.

Housing prices and mortgage rates have generally been on the rise over the past couple of years. In late 2021, the average 30-year fixed-rate mortgage was under 3%, which then peaked above 7% in late 2022. Now, in early 2023, the average remains above 6%, according to Freddie Mac.

Meanwhile, housing inventory has often been low, although that's starting to change. Active listings are up 67% year over year as of February 2023, according to Realtor.com. That could help housing prices slow down, but it still might take more time for supply and demand to balance out.

While these trends have influences from areas like the Fed tackling inflation and the pandemic fueling new real estate behavior, buyers still might look at historical trends to get a better sense of when to buy a home.

Figuring out when to purchase a home can vary significantly from person to person, and from region to region, but seasonality can affect issues like housing inventory and home prices. Start by exploring your mortgage interest rate options here now so you know exactly what you're eligible for or use the table below to compare rates and lenders. 

The best times of year to purchase a home

In general, keep an eye out for the following:

The best times of year to purchase a home (when inventory is high)

Typically, housing inventory increases during the spring and summer, and it tends to bottom out during the winter.

The exact peaks and valleys in terms of the best and worst months to purchase a home can vary based on broader conditions, such as how housing inventory generally fell throughout 2020 during the height of the pandemic. Typically, though, these seasonal patterns play out year after year.

Listings usually start to rise around March, with inventory peaking around early August, notes Kristina Morales, a realtor in Ohio, California, and Texas.

"The most likely reason is because of the better weather and school breaks. If the seller has a family with children in school, they typically do not want to sell until closer to the end of the school year. If the seller does not have children, most realize the flip side of that is that buyers do not want to move in the middle of a school year," she explains.

And as buyers come to expect this time of year to be some of the best months to purchase a house, that creates somewhat of a self-fulfilling prophecy, with more sellers looking to list at this time to meet these expectations, adds Morales. However, market conditions sometimes alter these dates.

"My busiest months since 2020 have been in December, so there is definitely more activity in the winter/holiday months than I think people would expect," says Morales. "With the low-inventory environment that we have been in, buyers should be prepared to purchase any time of the year."

If you're thinking of purchasing a home in the next few weeks or months then it helps to know the interest rate you're eligible for. You can easily find out here now or simply use the table below to review rates and lenders in your zip code.  

The best times of year to purchase a home (when prices are low)

While spring and summer might be prime seasons for inventory, the best times to buy real estate in terms of scooping up low prices tend to be the winter months.

Keep in mind, though, that housing prices don't always ebb and flow the way inventory might. In general, real estate values, like other assets, tend to rise over time. But you might find certain discounts, or prices might flatten out around the winter, before picking up again as spring approaches.

Typically, buyer competition tends to drop over the winter and holidays, says Morales, so that can influence prices. Rather than getting into a bidding war and paying above the asking price, for example, a low-competition environment might enable you to negotiate a better deal.

"Today, however, I think the best time to find a home and get a good deal on price is when the seller has listed their home too high and it is now sitting on the market longer than it should have," she says.

Time on the market does tend to rise over the winter, but the length can vary.

In the past, says Morales, 60-plus days would have been standard, but now listings of this timeframe "are a great target to give buyers the most negotiation power."

The bottom line

Overall, the best times of year to purchase a home depend on what your goals are. If you're looking for the highest levels of inventory, but not necessarily the lowest prices, consider the spring or summer. If you want to try to get a better deal, consider the winter.

That said, consider these to be general guidelines, not hard rules. Local conditions might differ, or broader market forces might influence things like inventory, prices, and mortgage rates, which can affect your decision.

In this current environment, for instance, "since inventory remains relatively low still, looking at factors like weather or time of year are less relevant," says Morales.

When you're ready to buy a home, look at the current conditions to see what makes sense. Perhaps mortgage costs are falling, for example, so you might decide to buy a house as soon as possible to lock in a good rate, regardless of seasonality. Or, maybe an economic downturn causes housing prices to drop during the fall, for example, which could give you the incentive to buy then. 

Regardless of when you ultimately decide to act, make sure you're equipped with your eligible interest rate, that way you'll know exactly what you'll be paying each month. You can check interest rates and lenders here now or use the table below to learn more.