When is the best time to buy?

I hear this question probably 5 times per month, every month. We all want to know when is the best time to buy. The quick answer is when you need a house. However, since we know that's not what people mean when they ask, let's look at why I believe November and December are the best time to buy a home.

A funny thing happens every year in the Real Estate industry. 3/4's of the entire Realtor workforce takes from the second week or so of November off through the end of the year. Personally I have never understood why so many people take that amount of time off, but I'm not like most Realtors and Brokers. I work, I work all year. I do take time off for Thanksgiving and Christmas. Usually about 3-4 days for each holiday. However, most Real Estate professionals look at this time of year as a very slow time. The reality is, it can be a great time to buy a home.

Here is why: Since we know that most Realtors take the last 6 weeks off for the most part, the amount of showings on listings goes down dramatically. So here we are in the second week of December. Most showings of homes are very few and far between. As a seller, when showings drop off, it's a signal for buyers to come into the market. The reason being is that with fewer showings on homes, sellers are more apt to negotiate a little more liberal because of their desire to sell their home and their fear that an offer at this time might be the only offer they receive.

So why buy now? Between interest rates being as low as they have ever been (4.125% the other day) and home prices being as low as they have been in around 10 years, and add in motivated sales and it's the perfect storm to buy. If your goal is to get the best deal on real estate right now, this next 10 weeks may just be the best time for you to put a contract on a house.

One last thing, don't forget that at some point in the very near future interest rates are going to climb. How high? When? Who knows! I don't have a crystal ball, but if you are close to my age (almost 50, yikes!), you know that the interest rates are crazy low.... I've never seen them this low. However, in short order they will go back to at least 6% or maybe 8%. A $200k house at 6% is going to be about $400 more per month than the current rate around 4%. That's a heck of a lot more buying power now than in the future.

Don't miss the boat and be one of the thousands that are about to say: "I should have bought a house during the crash of 2006-2010.

If you need anything or have any questions, don't hesitate to call or email.

Have a great weekend!