What's the best time of year to buy a house? It depends

A red and pink illustration featuring houses overlaid on calendar dates and money

'Prices usually go down in late summer and early fall, since fewer buyers are looking at homes'

(Image credit: Illustration by Marian Femenias-Moratinos)

You do not always have a choice about when you move — it may be required for a job opportunity or access to a different school district. But if you do have the flexibility to pick when you pack up, timing can make a big difference.

That is because "seasonality tends to affect factors such as inventory, the number of homes for sale and purchase price," said Kiplinger. However, which season is best for homebuying ultimately depends on the specifics of your homebuying situation. There are pros and cons to each season.

What season is best for home buying?

The best season for home buying depends on what you are looking for as a buyer. "Spring and early summer are the busiest and most competitive time of year for the real estate market," said Bankrate, which in turn means "there's usually more inventory listed for sale than other times of year." This will give you plenty of options to choose from. However, "home prices tend to be steeper to reflect the increased demand."

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Meanwhile, if you are after a bargain, "winter is traditionally the slowest season for home sales and, as a result, it's the cheapest time to buy a home," said Kiplinger. Since there is "usually less competition between buyers," it is likelier that "sellers may be more willing to negotiate to make a sale." That said, you will have less to choose from in the colder season.

Fall can offer a sweet spot amid the pros and cons of the other seasons. "Prices usually go down in late summer and early fall, since fewer buyers are looking at homes, and inventory is still pretty high after the busy spring selling season," said Ramsey Solutions, a personal finance blog. You might have slightly fewer options than you would during peak season, but because "many sellers want to avoid moving during the holiday season," you may also have "more room to negotiate," said Rocket Mortgage.

What other factors should you consider when timing a home purchase?

Time of year is just one factor among many that go into deciding when to purchase a home. "Market conditions, such as job growth, mortgage rates and tax incentives, also influence the best time to search for a new house," said Kiplinger.

The specifics of the housing market in the area you are planning to move also matter. "If you're moving to a 'hot' city or neighborhood, you might encounter higher prices and lower inventory," which could mean it makes sense to wait until things cool off, said Rocket Mortgage.

You will also want to consider your personal situation — both financially and otherwise. For example, "if you are getting married or having a baby in August, you may not be able to wait nearly a year for a larger home," said Bankrate. Having enough money saved up for a down payment and ensuring your debt and credit are in a good place are additionally crucial to starting homeownership off on the right foot.

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.