Is now a good time to buy a house?
Things to think about before house hunting
Last updated on
Oct 15, 2024 13:23
There are a few things to think about before you start scrolling through the property listings.
Whether it’s your personal or professional situation, the time of year, or the state of the economy - there’s more to buying a home than asking, “can I get a mortgage?” (although that’s important, too).
A few things can affect the availability and price of properties. Some of them are outside your control, and others aren’t. Knowing the stuff that’s going to have an impact on your property search can give you a better chance of finding the right home for you.
Let’s explore these in a little more detail.
The best time to buy a house is different for everyone. It has a lot to do with your personal and professional circumstances along with your plans for the future.
For starters, moving is widely considered one of life’s most stressful events. That’s why some people try to avoid buying if they’re already busy with significant events such as planning a wedding or getting ready for a new baby.
On the other hand, you might want to buy a new home because you’re getting married or growing your family. If this is the case, you need to consider whether you can juggle the extra time, cost and (unfortunately) stress involved in house hunting on top of your already packed schedule.
And speaking of cost, when you apply for a mortgage, you’ll have to prove you’re financially stable and can afford the repayments. This means that if you’ve recently changed jobs, you might need to wait until your probationary period is over before you can get a mortgage.
If you’re personally (and professionally) ready to buy and you want to know what sort of place you can afford, we’ve got you covered. Use our mortgage calculator to get an idea of what you could borrow and what sort of property price to start looking at.
The best time of year to buy a house is when competition is lower. This tends to be during the summer holidays when people are away, or in the lead up to Christmas when people are busier than usual.
Less demand for properties at these times means there might be less competition and even lower property prices. The flip side is that sellers may hold off on putting their properties on the market in quieter months because of the lower demand so there might be fewer places to choose from.
If you want a wider choice of properties, bear in mind that the property market is seasonal, with peaks and valleys along the way.
Like any other market, the housing market is affected by supply and demand. House prices don’t just keep rising throughout the year – they rise and fall as supply or demand increases or decreases.
So, when’s the best time to nab yourself a bargain?
If you want to avoid a potential bidding war or overpaying for a property, maybe steer clear of house hunting in spring and autumn if you can. House prices tend to peak at these times.
Put simply, the best time to buy a home is when there are lots of sellers and very few competing buyers - in other words, when supply outweighs demand.
So, to know if now is a good time to make your next move, it’s handy to understand the current state of the property market.
The availability of houses is influenced by various factors, both on the demand side (buyers) and the supply side (sellers). This is generally what decides whether house prices are high or low.
On the supply side, things are more clear cut:
If you’re looking to time your property search and purchase to get the best deal, it’s a good idea to look out for initiatives designed to boost the property market.
The 2020-21 Stamp Duty holiday was a great example of this. The government adjusted Stamp Duty rates across the UK in response to the COVID-19 pandemic to help house buyers save money.
Habito flags these kind of initiatives and helps make the house buying process easier, whenever you choose to buy. Get started here.
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Habito specialises in helping you get the best mortgage or remortgage, all online, for free