When is the best time to buy a house?

How to choose the best time to buy a home?

As mentioned before, there are many factors to consider before making a purchase. These are the most relevant ones:

The state of the real estate market

The main factor influencing the purchase of a house is the state of the sector. Depending on the type of supply and demand in the market, the process will be easier or more challenging.

It is important to differentiate between two types of real estate markets, as this will help identify the best time to invest in a property:

• Buyer's market: characterized by a surplus of homes for sale compared to buyers. This leads to lower prices, making it an ideal situation for negotiation and purchasing a property at a reduced price.

• Seller's market: on the contrary, this occurs when there are more buyers than available homes. In other words, there is a noticeable shortage of supply. In this case, prices tend to be higher, and negotiation opportunities are reduced.

Interest rates and mortgage rates

When buying a home, it is essential to understand the state of the economy. Interest rates and mortgage rates, such as the nominal interest rate and the annual percentage rate , are determined by the policies of the European Central Bank and influence the cost of a mortgage.

That means if these rates are lower, monthly mortgage payments will also be lower. Conversely, if they are high, payments will be more expensive.

These values, like the real estate market, are sensitive to changes in government policies, crises, and recessions. Keeping up to date with economic activity will help you understand the sector.

Time of year

Depending on the season, changes in the real estate market may be observed:

• Spring: typically, this is the season when buyers are most active, and there is higher demand for homes. As a result, there are more opportunities, but prices tend to be higher, reducing the chances of negotiation.

• Summer: this season is usually similar to spring in terms of acquiring a property, with many opportunities and high competition.

• Autumn: this may be the best season to buy a house since there is less competition, and sellers are more willing to negotiate to close a sale before the end of the year.

• Winter: this period is usually characterized by lower competition; however, it should be noted that opportunities also tend to be scarcer.

Personal financial situation

In addition to paying attention to the state of the market and the country's economy, it is essential to analyze your financial situation and needs.

If you are sure that you prefer to buy a property rather than rent, it is advisable to evaluate your available savings, employment situation, and future prospects. These three elements will play a crucial role in applying for a mortgage and determining whether it is a good time to buy a house.

Tips for choosing the perfect time to buy your home

Besides considering the key points mentioned above, we recommend following these tips to help you choose the perfect moment to buy:

Research the local market

Real estate prices can vary significantly from one city to another. It is advisable to research the available listings in your area to determine whether it is a good time to buy or if patience is needed.

Some of the data worth analyzing include: the average price in the area, market trends, and upcoming new construction projects in your city. At Engel & Völkers, we provide an annual report that allows you to study and understand this information.

Consult with an industry expert

Having a reliable real estate agency that studies the market for you and helps you find your dream home is essential. A qualified real estate agent who knows the area will be able to present you with the best market offers.

At Engel & Völkers, we have experienced professionals who help you understand the sector and negotiate on your behalf. Additionally, they have access to a vast network of contacts, ideal for finding properties that have not yet been listed on the market.

You just need to get in touch to enjoy the luxury of these advantages and avoid any concerns about the process.

Be flexible

When buying a home, patience is essential, as many factors influence the decision and can make a difference. In this case, it is advisable not to rush, carefully evaluate the available options, and take advantage of opportunities.

Mistakes to avoid when deciding when to buy a house

If you want to be sure you are choosing the right time to buy a home, try to avoid these mistakes:

• Lack of personal financial analysis: failing to assess your financial capacity and future plans can lead to choosing an unfavorable time to invest.

• Ignoring the real estate market situation: rushing into buying a home when the market is booming can be detrimental. It is advisable to study the sector and wait for strategic moments of the year.

• Not evaluating the financial market: acting without understanding the state of the economy may lead to overpaying on mortgage costs, affecting your long-term financial stability.

• Delaying the purchase: waiting for the "perfect" moment when prices drop or hesitating out of fear may result in missing a great investment opportunity.

• Overlooking temporary incentives: unique discounts can be found through real estate fairs or market opportunities. Missing out on them may lead to regrets in the future.

The ideal time to buy a house is influenced by multiple factors, so it is essential to analyze them in detail. That is why it is advisable to be cautious and take time to reflect on the situation.

A real estate agent can help you resolve any doubts and guide you through the home-buying process. At Engel & Völkers, we are delighted to help you find your future project.