Starting the homebuying process is one of the biggest steps you may take on your financial journey. Whether it's your first time buying a home or you're a seasoned buyer, there are many stories and opinions about the best time to buy. While many say spring and summer are the best seasons, starting the process in the fall can be highly beneficial and offers advantages.
On this episode of Making Sense of Money, we sat down with Zach of Local Collective Real Estate to talk about the benefits of purchasing a home during the off-season. We’ll gain a better understanding of the real estate market seasons, why the off-season is different, and learn some tips and tricks for preparing to start the homebuying journey.
Understanding the Real Estate Market Seasons
When looking at the real estate market, rather than dividing it into the traditional quarters of the year, Zach divides it into three phases:
The Hot Season: This is the busiest time in the housing market, falling between March and June. "Coming out of the winter months, everything gets nice and green," Zach explained. "That's when listings skyrocket, and buyers start to come back into the market."
The Lag/Lull Period: Supply and buyer demand begin to shift between July and October. Vacations, summer activities, and back-to-school planning become the focus. As the number of buyers starts to level off, listing supply often remains the same.
The Off-Season: This falls between the months of November and February. "This is the time when the listing supply drops and so does the buyer's saturation," Zach said. While fewer homes may be listed, properties that remain on the market often receive less competition from buyers. With fewer buyers actively searching, available homes may receive more attention from serious shoppers.
The Off-Season Doesn't Mean No Opportunity
It’s easy to assume that there are very few options for homebuying during the off-season, and while this may be true, there are still many advantages that can lead to great opportunities. During this time, there is less competition from other buyers; sellers are often more motivated to get their homes sold; negotiations can be more favorable towards the buyer; and buyers have more time to evaluate potential homes.
“Generally, you’re going to have more time to take a look at the house,” Zach shared. “The timelines aren’t as tight, and the offers aren’t as aggressive.”
Zach also encourages that the best opportunities often come from staying prepared and consistently watching the market. For example, he shared part of his own homebuying journey during the off-season. They knew exactly what they wanted in a home, closely monitored the market, and acted quickly when the right property became available. His story and experience show that opportunities can arise even during the winter months for buyers who are prepared.
How Buyers Can Prepare Now
Whether you are looking to start the homebuying journey now or planning for it in the future, Zach shares some practical ways to prepare:
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Define your wants and needs before shopping
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Don’t get distracted by the market noise
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Stay focused on personal goals, rather than trying to perfectly time interest rates
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Start talking with a realtor earlier than you think
“Know what you want,” he said. “Have conversations, whether it’s with yourself, your spouse, or a realtor.” Taking these steps can help you approach the homebuying process with confidence, whether you’re ready to buy now or planning to in the future. No matter the season, preparation is one of the most important factors.
So, while spring and summer are often considered the busier seasons for homebuyers, the off-season can offer advantages for those who are prepared. With less competition, potentially greater negotiating power, and more time to make big decisions, buying a home in the fall or winter may be worth it. No matter when you’re ready to buy, having a plan and the right team by your side can help make the homebuying process a success.
You can listen to the full podcast here, where Zach shares more about why working with a realtor matters and lays out the numbers and statistics for the different market seasons.
If you’re thinking of starting the homebuying journey or have questions about the process, P1FCU is here to help. Visit https://www.p1fcu.org/personal/home-loans to learn more about our mortgage services and start speaking with an expert loan officer today.
