When Is the Best Time to Buy a House?

The Best Time for Inventory: Spring and Summer

If you want a wide selection of options to make sure you find your dream home, spring and summer tend to be better bets. New home listings usually peak between April and June, and inventory levels usually stay high through August. Many people choose to buy and sell during these months due to the warmer weather and school schedules.

For more context, if you're planning on buying in an area with cold winters, home inventory in May and June is often double that of December and January. However, if you're buying in an area with a more temperate winter climate, the difference isn't nearly as stark.

The Best Time for Cheap Prices: Fall and Winter

Home prices tend to start falling in August and continue to be more flexible throughout the fall and winter seasons. What's more, you're likely to face less competition during the colder months, which means you'll have a better chance of securing a great deal in negotiations.

October through December tend to be the least competitive months, resulting in fewer homes being sold above their list price. However, the difference in inventory and competition may vary depending on how temperate or harsh your winters are.

Other Factors That Influence the Best Time to Buy a House

While timing is important for prospective homebuyers, it's just one of many factors for you to consider as you determine when to buy a home. Here are some others.

Median Home Price

What's happening in the economy can have a significant impact on home prices. Over the past few years, for instance, home prices skyrocketed due to the economic turmoil caused by the coronavirus pandemic. Here's a look at the median home prices over the past five years, according to the Federal Reserve Bank of St. Louis:

Median Home Price of Homes Sold in U.S.

An economic recession, on the other hand, could translate to lower price tags on homes and less competition from other buyers, which could result in a buyer's market.

For a homebuyer in good financial shape, these factors can result in big savings. The downside of buying during a recession is that lending requirements may be tighter, so your credit and financial health need to be in solid shape.

Interest Rates

Mortgage interest rates have a direct impact on your monthly payment, so it's important to pay attention to historical trends, as well as current forecasts.

For much of 2024, for instance, the average interest rate for a 30-year fixed-rate mortgage hovered between 6% and 7%, according to Freddie Mac. While that's lower than the peak of close to 8% in late 2023, it's well above the record-low rates below 3% that we saw in 2020 and 2021.

Average Mortgage Rate, 30-Year Fixed-Rate Loan

While mortgage rates are forecast to decrease slightly in 2025, it may take a few years to return to more comfortable levels.

Learn more: Compare Current Mortgage Rates

Local Market

Home prices, inventory and other details can vary depending on where you plan to buy a home. In the Northeast, for instance, home prices rose by 11.8% in 2024, while they were up just 3.4% in the South, according to the National Association of Realtors.

At the same time, inventory in the South rose by 1.5% in 2024 compared to 0.5% in the Northeast, according to the Federal Reserve Bank of St. Louis.

As a result, it may be a good idea to hire a real estate agent who understands the local market and can give you insights and expert guidance.

What to Consider Before Buying a House

While seasonality can influence your decision to buy a home, it's important to assess your situation and readiness before you start the homebuying process. Here are some things to keep in mind:

• Budget: Your budget will help dictate whether you can afford to buy a home and how much house you can afford. If you don't already have one, take steps to create a budget and evaluate your spending habits. Then, determine how much you can set aside for a mortgage payment without sacrificing other important financial goals and obligations.
• Down payment: While some home loan programs don't require a down payment, putting some money down can reduce your loan amount, monthly payment and possibly even your interest rate. Evaluate your savings to get a sense of how much you can put toward your down payment and whether that's enough for a comfortable home and payment.
• Credit score: Minimum credit score requirements can vary by loan program, but you'll generally need a score in the low to mid-600s to get approved. Even so, the best mortgage terms are reserved for people with high credit scores. Get free access to your Experian credit report and FICO^® Score^☉ to determine whether your credit is ready or if you need to do some work to improve it.
• Current housing situation: If your current housing situation is stable, you may have more time to prepare yourself for a home purchase. However, if you're relocating for a job or your lease is ending, you may have less flexibility with your timeline.

Learn more: Homeowner Costs Beyond Your Mortgage

Frequently Asked Questions

Get Familiar With Your Credit Now

Before you begin the process of applying for a mortgage or shopping for a home, we recommend tracking your credit for at least a few months. It's free to monitor your credit with Experian, which enables you to track changes in your score and learn how to improve it.

While this can take a little extra effort, it can help improve your chances of getting approved for a mortgage, and at a competitive rate that translates into significant savings in the long run.