Looking to Buy A Home This Summer? Why it Might Make Sense to Wait

Looking to buy a new home? Now may not be the right time to do so according to a recent article posted on USA Today. The article cites three main reasons why buying a home this summer may not be in the best interest of the modern consumer. They point out that before buying a home one should always check that they have enough cash (the article suggests being able to put 20% down on a new house), as well as a relatively strong credit rating. If not, the article suggests that potential home buyers spend time working to ensure that both of these goals are met before looking for a home. While these are issues that can face potential homebuyers at any point of the year, the article also points out that there are specifics about the summer that make this time of year less than optimal for buying a home:

 Families like to move when their kids aren’t in school, and it is just more convenient to move in nice weather than in frigid winter weather. In fact, about 50% of all home sales take place during the summer alone.

Like with any investment or purchase, buying when everyone else wants to buy is rarely the best idea. Sellers generally see more activity during the summer, which means more offers and the ability to hold out for the price they really want.

Realtor.com also says winter is the least favorable time of year for sellers. Generally, those sellers who put their homes on the market in the winter are more eager to move, and are more willing to make deals. As a buyer, the lower demand also means you’ll get more personal attention from professionals like real estate agents, home inspectors, and closing attorneys, making the whole process easier and more pleasant.

While deciding when to buy a home is ultimately up to the consumer, as well as a decision that is in many cases affected by outside circumstances (new job, new baby, other major purchases, etc.), the information above provides interesting insight about why this summer may not be the best time to buy. It suggests that, if possible, it is in the best interest of the consumer to push their purchase back a few months to a time in which the demand for houses is less. However, it is important to note that doing so may result in the consumer having less of a supply of new homes to choose from. Thus, though this information is something to keep in mind, deciding when to buy a home is, as stated, the decision of the consumers themselves.

Read More- “3 Reasons Not to Buy a Home Now” (Matthew Frankel, The Motley Fool) (Appears on USA Today)

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A rising senior at Colgate University, John is currently working as a research fellow with Consumers' Research.

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