Best Time To Buy a Home For First-Time Homebuyers
This guide covers the best time to buy a home for first-time homebuyers. There are two parts to the best time to buy a home for first-time homebuyers. First and foremost, the homebuyer should be ready financially and credit-wise. Buyers should not be struggling with the down payment. John Strange of Gustan Cho Associates explains the best time to buy a home for first-time homebuyers as follows:
Homebuyers should be ready financially so that they are not overwhelmed with debts. They should have their credit card balances low. Low credit card balances will enhance credit scores. The higher the credit score, the lower the mortgage rate. They should have a job where it is stable and solid and where the chances of unemployment are very low.
The second part of the best time to buy a home for first-time homebuyers is the time of year. Considerations like school for children and the weather can play a factor in deciding the best time to buy a home for first-time homebuyers. This article will discuss the best time to buy a home for first-time homebuyers.
Considerations on The Best Time To Buy a Home For First-Time Homebuyers
A home purchase is most Americans’ biggest investment in their lives. Below are considerations when the best time to buy a home. Have enough money saved. Inheritance from the death of a family member. Settlement of a lawsuit. They just paid off student loans, car payments, credit cards, or other large debts. Just received a raise or promotion, changed jobs, got a bonus, or came into money for a down payment on a home purchase. Got married and have another wage earner. Got married with a spouse with children and needed extra space. Sold your home to upgrade to a larger home or downsize. The more money you have, the best time to buy a home.
The Best Time To Buy a Home Is When Housing Inventory Is High
Demand versus supply is key when timing the best home buying time. Home prices are high when demand is high, and inventory is low. Home prices are lower when housing inventory is high, and demand is low. Alex Carlucci, a Senior Vice President at Gustan Cho Associates and a housing market expert, says the following about the best time to buy a home:
A great time to buy a home is when plenty of homes are available on the market, and home sellers need to be price competitive to sell their homes and get them off the market. Usually, home inventories are heaviest in the spring and summer selling seasons.
Many families put their homes on the market because foot traffic is heavy, and buyers want to move in before Labor Day and get their kids ready for school. Data shows the highest month for home-for-sale inventories in May, followed by April and June. In that order, the months with the lowest inventories are December, November, and January. Again, you might be able to strike a great deal in the winter months, as owners are more likely to have to sell their homes. But the data shows more homes on the market and more competition for price in the spring and summer seasons.
Buying Home When You Are Financially Stable
Buying a home during great economic times is great. However, more importantly, you must be doing well. Having a solid job with job stability is key. Homebuyers need to consider the likelihood of their income and job outlook in the future. One of the biggest reasons for a home foreclosure is unemployment or loss of business. Homebuyers should consider the likelihood of getting a new job if they lose their current job. How fast can they get a new job? How solid is your resume? How much in demand are positions in your line of work? Always have backups Data like housing starts and employment numbers are great indicators of how the economy is doing. But more importantly, take the micro-analysis approach and focus on how your industry is doing and how secure your job is. Michael Gracz, the National Sales Manager at Gustan Cho Associates, is a housing market expert. Mike said the following:
Besides the likely fact that since the economy is doing well, you must be doing well, too, there are other factors in play when studying the economy. That’s particularly the case with two key indicators: New construction. When new home construction is strong, there are more homes to buy, and ample supply almost always relieves pressure on home prices.
That’s a good time to act if you have the cash and are ready to buy a new home—income, and employment numbers. When consumer sentiment is strong, income is up, and employment is near maximum levels, buyers typically have more cash to buy a new home and stronger credit which translates into lower mortgage interest payments. That could be a good time to buy a home, too – when you’re cash-flush.
The Best Time To Buy a Home Is When It Is The Right Time For Your Family
There is no set time for the best time to buy a home. The best time to buy a home is different for every family. The key is for buyers to be financially ready. Make sure they buy a home they can afford. How much I can afford versus how much I can qualify is key. In general, home prices are lower during the holiday winter months. Homebuyers with children need to time home purchases during the school season. For more information about the contents of this article or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com.
