We’re often asked by clients “When is the best time to buy a home in Austin?” How you answer this question should take into account your personal and financial situation. But, for the purposes of this post, we’re going to assume there is nothing in your personal life that will impede your choice to buy and your financial and employment situation is stable.
Best Time of Year: Winter
For buyers, the best time to buy a home is going into the winter months and during the Holidays. Now is the time when most people who have been looking take a break to enjoy the Holidays with their families. We often hear buyers who haven’t started their search saying they’re going to wait until spring. If you want to find a good deal, buying a home during the slow months is your best chance.
Why the Winter Months During the Holidays?
Why is winter the best time? The simple answer is less competition. The fewer people you have competing for homes, the less chance you’ll have for a bidding war. This means, you’ll likely be able to pay less for a home than you would during the busy spring season. If you look at past sales data you’ll often see homes bought in December sold for less than similar homes bought in March and April of the following year.
Winter 2018 is an Especially Good Time
Why? Because interest rates are still hovering around historic lows. While they’ve been low for some time, experts are predicting these rates will go up when the regulations are tightened. Lower interest rates allow buyers to purchase more home for less money because interest rates impact your monthly mortgage payment much more than the sales price.
For example, with a $300,000 mortgage, your mortgage payment goes up about $183 when your interest rate increases from 4.5% to 5.5%. Keeping the interest rate the same, (we assumed 4.5%) you’d have to increase your loan by $36,000 ($336,000) to see a $183 increase in your payment.
Considering Buying a Home in Austin this Winter?
Did you know using a Realtor to help you buy a home in Austin costs you nothing? That’s right! Our commission is paid by the listing company (company whose sign is in the yard). If you’re looking for an agent who will point out potential resale difficulties, negotiate hard on your behalf and help you navigate the complicated process, check out our Austin Home Buyer Representation Program. Then call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation. We’ll help you analyze your situation and help you determine if now is the best time for you to buy a home in Austin.