Summer Home Buying Tips

What home shopper doesn't want to know the best month to buy a house. Buying a house in summer works well for families with kids in school. In this article, we'll discuss the pros and cons of purchasing a home in June, July, and August. Read on to see if this is the best season for you and your next move.

Is summer the best time of year to buy a home?

Under certain circumstances, the summer real estate market could be the absolute best and only time for you to buy. If you're selling your current house, you'll want to have it on the market in early spring. That will give you the funding for your new home. You can schedule concurrent closings where the home you're selling closes the day before or the same day as the one you're buying. 

Summer is perfect for parents who don't want to move in the middle of the year — especially if it involves changing schools. Because of that, summer real estate can be an active market. If you're moving to another town or even another state, summer is also one of the best times.

But prices will be higher than other times of the year. So as a buyer, you have to be ready. Here are three tips to get you the home of your dreams:

3 Tips for Buying a House in Summer

• Have a solid pre-qualification letter from a well-known lender ready to go.
• Save up for a substantial earnest money deposit to show the seller you're serious.
• View homes as soon as they come on the market and watch for homes falling out of escrow.

Are more houses for sale in summer?

There are more properties for sale in spring and summer. The busiest months for sales are traditionally May, June, July, and August. But just because there are more homes for sale doesn't mean you'll find any great deals. Sellers have been waiting for the nice weather and are hoping to sell their homes for top dollar.

If you're not pressed for time, wait for the end of summer. You may see some price reductions. And don't be scared away from homes that have been on the market for a while. You never know the circumstances. Sometimes your agent can ask the listing agent why the home has been on the market for so long. It could be the house was in escrow, but the last borrower's financing fell through.

Buying a home in the summer may be your only choice if you're relocating to another state or city far away from your current location.

Buying a House in July

The busiest months for real estate can also depend on where you live. Traditionally more homes sell in the summer than any other season, except in certain parts of the country that get blistering hot like Phoenix, Las Vegas, Tucson, Riverside, San Antonio, Miami, and Houston. With temperatures hitting over 100 degrees day after day, driving around looking at homes isn't very appealing.

In those blistering areas, smart sellers and buyers plan ahead. Their real estate season may start in winter and spring when it's cooler. But, purchasing a home in July can still be accomplished in these hot spots, especially with so many homes available for online viewing.

No matter where you're located, ensure that you have a knowledgeable local real estate agent for the most success. When they know the particular area, you're interested in, they can help you craft the best offer.

What is the best month to buy a house?

There are some excellent advantages to buying a house in August. The inventory levels are still high, but prices are starting to come down. Plus, by waiting until the end of the summer, you've hopefully had time for a vacation in June or July. Then when you're all rested up — you'll have the energy and enthusiasm for your move.

If you have children attending the same school — moving close to the start of the year won't be an issue.

More deals in August may be available as motivated sellers want to sell and move before the cold weather hits.

What is the best season to buy a house?

The best time of year to buy real estate depends on your circumstances. Any month could be the perfect month for you. But if the price is of significant importance — avoid early summer. When sellers are just getting their homes on the market, they won't be in any frame of mind to lower their price. Have patience and wait till the end of summer. You could be surprised and find a home you were interested in earlier has now reduced its price.

Here's another tip if you're trying to save money on purchasing a home. Don't forget to watch the interest rates. With record-low mortgage rates, you may be able to afford more than you thought you could. 

The professional mortgage team at PenFed hopes you've enjoyed this information about summer home buying. Please keep us in mind the next time you need a new mortgage or are thinking about refinancing.