Buying a House - Is There a Right or Wrong Time to Buy?

If you're by the financial means to own your home, then it should be the perfect time to buy a house right? While finances are crucial when it comes to purchasing property, there are many other factors that determine whether the time for buying a house is ideal. Timing plays a major part in market prices and leverage when you want to negotiate. When is it a buyer's market? Let's consider a few factors to make the best decision.

Finance

What do current interest rates look like? Depending on the market, should you hold out for rates to improve or should you take a chance and bite the bullet despite high inflation and a volatile market? No one can predict the future and a market with an all-time high in inflation rates may get worse or it may get better with time. The question is whether you are willing to wait to see how things pan out, to perform market research, and to look for indicators that are signs of an improving economy.

Another factor to consider is your long-term affordability. Because you have the current finances to take on an extra monthly expense in a home loan, will you still afford your repayments if a major financial disaster became a reality? Again, no one knows what the future will bring but if you are just covering your basic expenses after the mortgage repayment comes off your paycheck each month, perhaps it is better to wait and save before making an investment. You don't want to land under financial pressure if anything should affect your current financial situation and you have a new house to pay for.

What Does Your Credit Look Like?

If you have good credit, you'll qualify for better interest rates and you'll get approved much faster and easier when you apply for a mortgage. Bad credit and buying a house are not a good combination and most banks won't lend you any funds unless you start working on your debt.

Analyze the Housing Market

What does the housing market look like? Are property prices inflated or can you find a good deal on a house in a good neighborhood? You don't want to overpay for a house because the market will change and when you want to sell at profit, you might not be able to list your house for its original purchase price.

All properties appreciate, some more than others for a given period but you don't want to think of moving 5 years down the line and not be able to sell the house because it is simply overpriced. Wait for the right time and at the appropriate rates so you can make a better buying decision.

The property market performance also helps you determine whether you have to negotiate power as a buyer. Where prices have dropped because of market conditions, this works in your favor. In ideal home-buying conditions, you could get fair prices on new builds and renovated houses depending on the location. In this case, finding the best property to invest in or make your home is all about timing.

The Season for Buying and Selling

Most people want to know if there's a particular time of year when buying a house is best? Generally, home buyers will reduce their prices during winter, but spring and summer are the months when more properties seem to be listed which gives you more options.

Other factors that you may consider when buying a house are foreclosures and urgent sales. Sellers who want to sell quickly are open to negotiation compared to those who are prepared to sit tight and wait for better offers. You can speak to a local estate agent about the right times to buy a house.

Final Thoughts On Home Ownership

Taking on a mortgage is no small feat so be sure that you not only can afford the house you're interested in but that you get the best possible rates too. When you want to buy a house, whether a family home or a future investment as a rental, take the time to perform market research and ask yourself whether you're getting the best possible value. Don't pay too much for a property and if you can't get a good interest rate, then perhaps waiting for improvements in economic conditions is not such a bad idea.

Remember, if you can afford a home loan, be confident in your negotiating power whether it is for decent interest rates on your mortgage or the purchase price of a property for sale. Make comparisons of property prices for a specific location and this should help you find well-priced homes in good locations.