Is spring the best time to buy a home? It may well be. Property prices tend to be lower than in the peak summer season. And you face fewer of the challenges of finding a place and moving than you may encounter during winter months.
Of course, your pick of the season for your next move may be driven by factors over which you have little control. But, if you have the luxury of choosing your timing, spring brings both pros and cons. Let's explore those.
See mortgage rates for spring home buyers
Prices when buying a home in the spring
Summer is the season when average home prices are at their highest, according to the National Association of Realtors® (NAR). And winter's when they hit seasonal lows. You don't need to be Nancy Drew (or Veronica Mars, if you're a bit younger) to deduce that spring and fall are somewhere in between.
And the NAR adds some detail. It reckons that between February and March, sales activity increases by 34%. And, of course, that has an effect on prices, which typically rise by 3% over that time. The NAR explains that these increases "are mostly due to seasonal variances. As a result, taking the seasonal differences out of the equation and creating an annualized rate really shows how the resale market is performing."
Those seasonally-adjusted data tell a bit of a different tale, showing an annualized rate of sale that is lower in March than February in each of the last six years since 2019. That's partly due to the pandemic market distortion in 2020, but also from challenging affordability conditions over the last few years.
But the trend of faster home sales and firming prices are usually seen as the spring progresses. Both sales and prices tend to reach their peak in May through August, and June often sees the highest yearly level for prices.
Home prices drop with leaves in the fall
If you're planning on timing your next property purchase wholly on price, Realtor magazine reckons the best time to buy a home is in the fall. "Buyers tend to find less competition, more inventory, and the biggest reductions on list price during that week," the publication says, basing its assertion on a three-year study of 53 metro areas. By HSH's calculations, existing home prices were about 3% lower in the fourth quarter of the year compared prices in the second quarter, at least over the last couple of years.
But you probably shouldn't be basing your home purchasing decisions wholly on that strategy. And we'll soon be exploring some of the other factors that might influence you.
Related: Buying a Home in the Fall
Price fluctuations
But why do home prices go up and down with the seasons? Well, the reasons are mostly practical. Demand drops as winter sets it. In many states, it can be difficult to travel around to view homes, or the weather too poor to spend much time evaluating them, at least from the outside. And, if you do, they often look drab and dreary against gray skies and monochrome yards.
Add to that the challenges of house hunting (and selling!) over the holiday season, and there are simply fewer buyers around. Sellers know this, so they try to avoid listing unless they absolutely have to, and sellers may even pull their listings for a time. Those folks that remain in the market are the most motivated buyers and sellers, and this usually adds up to lower prices.
Negotiating a purchase in springtime
Spring transforms those bleak landscapes - both the actual landscape and the housing market. As the weather warms, more potential list homes and buyers begin their searches. Some purchasers may find bargains among old listings that have been hibernating for the previous few months. Others buyers are drawn in by fresh, new listings to peruse.
Typically, the rising demand created by an influx of new buyers outstrips the increase in the supply ("inventory") of available homes. Competition for desirable homes and locations increases, so prices move up.
When you buy a home in the spring, you may find you have more leverage than you would in the summer peak season. But, compared to winter, you'll have less, so be prepared to pay more for the extra choices you may have. This can include things like paying over the asking price, fewer seller concessions and a greater prospect of "bidding wars", which become more common in the spring.
Related: Buying a Home in the Summer
Other pros and cons when you're buying a home in the spring
When you buy a home in winter, you're likely to see instantly if you're faced with a leaky roof, inadequate heating, poor insulation or drafty windows. When you buy in summer, problems with air conditioning and a pool may be similarly exposed.
But, in many states, spring and fall are times homes are under the least strain. So those natural stress tests often are simply not there. It may be a good time to call in a home inspector to give a potential home an objective review.
Pros & Cons Of Buying Home in Spring
| Pros | Cons |
|---|---|
| Your kids won't be battling the weather when they start at their new schools | They're still going to be moving partway through the school year |
| Lots of exciting new listings and open houses | Who has time to see them all? |
| Open houses are fun and you might make friends | Those friends are probably homebuyers, too. They're competing with you |
| Your moving truck won't get stuck in a snowdrift | Your moving company's rates are likely to be higher than during its off-season winter period |
| The people who will help with your purchase (real estate agent, loan officer, home appraiser, home inspector etc.) will be less busy than during the peak summer season | They're busier than in winter |
But how much does this stuff matter? Bottom line, your goal is to find a home you love at a price you can afford. And that's the same year-round.
If you do decide to try to buy a home this spring, keep in mind that sooner may be better than later. Starting your shopping in February through April might provide the best combination of selection, price and competition -- and waiting is likely to bring less, more and more.
This article was revised by Keith Gumbinger.
