What's the best season for buying property

Research is the name of the game when it comes to purchasing a property: everyone wants to get the best value they possibly can, and that's just when considering mortgage and property options.

Buyers tend to focus on what price range they want to pay, what area they want to buy in, inner city or the burbs and freestanding house or a strata unit is the way to go. Very few buyers however consider, if it’s the right season for them to be buying.

Before we dig deeper into the best time to buy a residential property, though, we need to tackle the best time to apply for a home loan.

When to apply for a home loan?

Before you get into the fun part of visiting properties and going to open houses, it's important to find out what your borrowing capacity is. That way, when it's time to make an offer, you will have a clear idea of what your budget is and won’t end up making offers on properties you cannot afford.

You may find some brokers or banks telling you that’s it’s important that you apply for pre-approval. Unless you’re attending and bidding at an auction (or aren’t sure that you will qualify for a loan due to your credit history), it’s not important that you have a pre-approved loan and the broker or lender is simply trying to get you on their books.

When applying, the most import thing is your readiness to buy and the amount of deposit you have accumulated or if using a guarantor, the available equity in the guarantor’s property.

Do you know, with loansHub as your personal mortgage manager, you can apply for a better home loan anytime of the day, without an appointment and all from the comfort of your sofa.

Now, back to the important question.

When is the best time to buy a house?

There are some people who believe that they should base their purchasing decisions on the seasons. While it might sound too good to be true, it's actually the case that each season has different impact and effect on the real estate market.

Spring

Described as the busiest period for property sellers, flowers in bloom marks the start of stiff competition among prospective buyers. Many people turn up to open house inspections during this season, as many of them want to settle in their new houses before new year starts.

Because of the high volume of mortgage activities that accompany the crush of would-be homeowners, property prices are inevitably higher here. It's a seller's market through and through. 

Summer

With endless sunshine and Christmas break in tow, summer is when most mortgage deals are sealed.

Sellers take advantage of this season as the weather starts to lighten and brighten the surrounding, which creates a good backdrop for domestic properties – especially those with in-demand extras sought out by prospective owners, like a good garden, or a pool.

Similarly, to the spring, a high demand for properties will boost prices. Fortunately for buyers, this can be offset by an abundance of options to choose from, so summer offers a slightly better chance of finding the right home for you.

Autumn

This marks the beginning of cooler seasons, which can cause a dent in the real estate market for one of the most-courted homebuying groups – families.

Now that the peak of the year's house buying frenzy is dying down, there is less competition among buyers, so the prices will naturally come down, even if only slightly.

Of course, The drawback to this is there may potentially be fewer properties up on the market – vendors often hold off on selling homes while they wait for the next hot market so they can take advantage of buyers willing to pay full price.

Buyers, though, can take this time to reach out to vendors to try and negotiate prices, as well as terms and conditions.

Winter

The prime time for property buyers, the cold weather gives purchasers the chance to snag their own residence for a lower price tag. Why? Because of a lack of competition.

Properties up for sale during this period usually suggest that the vendors are hoping to get some quick cash through a fast sale. As a result, they are usually willing to compromise with the buyer on terms and conditions, even the price.

Of course, a slower market means that prospective owners will have a smaller number of properties to choose from, which can be a downside for particular buyers.

Start of the New Year

January is usually the bottom of the real estate market, with November and December being the crest.

The first month of the year is likely the most opportune time to for buyers to get a house since they can be able to find a bargain on a property that was passed in before Christmas as most buyers also want to settle in before returning to work.

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This article via Your Mortgage does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.