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11 min read Oct 21, 2022

When Is the Best Time to Buy a House in 2022?

Best Time to Buy a House

If you plan to relocate in the coming year, you may be wondering, about “The Best Time to Buy a House?” The truth is that this question is more nuanced than you might think. This article will go over some of the most important factors to consider before buying a house in 2022.

✍️ The real estate statistics in this article are based on national surveys and data from across the United States. Some data may differ depending on where you are in the country, which can affect real estate market trends and the best time of the year to buy a house.

Is Now a Good Time to Buy a House?

In reality, there is no such thing as the “best time” to buy a house; it is difficult at any time, even in a buyer’s market. The decision of the best time to buy a home is heavily influenced by your personal circumstances:

  • Your budget
  • Amount saved for a down payment,
  • Your credit score

That being said, do not delay your home-buying decision. Mortgage rates are rising and are set to reach recorded levels in 2023. If you have the required money, buy now!

Housing Market Conditions

The current real estate market conditions are shifting, making it easier for some home buyers while making it more difficult for others. Here are some of the most important factors to consider, they are:

1. Interest Rates are Rising

In an effort to slow the economy, the Federal Reserve is rapidly raising interest rates. The Federal Reserve increased interest rates by 200 basis points, or 2%, in 2022 in an effort to curb inflation.

Higher interest rates are never welcome news for borrowers because they mean a higher monthly mortgage payment.

2. It’s Still a Buyer’s Market

In a buyer’s market, the seller will have to haggle with the buyer and perhaps make some compromises.
Additionally, if the house has been up for sale for a while, a buyer might decide to make a lower offer than the asking price.
However, the housing market is cyclical. In a seller’s market, sharp price increases and a spike in new listings can shift the situation into a buyer’s market.

3. Homes are Selling Fast

Homes have been selling quickly in recent years, which has impacted potential buyers. Buyers, for example, may need to make concessions or offer a higher price in order for their offer to stand out to sellers. Before you start looking for houses, you should consider your budget so you know what you can and cannot afford.

How to Sell My House Fast: Check out the best options on how to sell a house fast!

What are the Best Months to Buy a House?

Historically, the best months to buy a house are October through February. Compared to other times of the year, October and February have lower median sales prices. This is due in part to the holiday season, but also to seasonal changes in pricing and homebuyer competition, which cause a downturn in the real estate market, which is especially beneficial to buyers.

U.S. Housing Market

Homes in the United States sold for a median price of $397,862 in October 2022, a 5.0% increase over the same month the previous year. There were 439,596 properties sold in October of this year compared to 617,752 in October of last year, a 28.8% decrease in sales on average. The 30-year fixed-rate mortgage’s average national rate is now 6.9%, a 3.8-point increase from the previous year.

Higher Median Market Days

Historically, the median number of days a home stays on the market increases between October and January, indicating a less competitive housing market for buyers.

Homes were on the market for 71 and 61 days, respectively, in January 2021 and 2022. This is more than in June 2021, when homes stayed on the market for 36 days.

The longer a home is on the market, the more chances buyers have to find and buy the home they want. Furthermore, longer days on the market cause sellers to be more open to price, closing date, and other terms that are beneficial to buyers.

Higher Price Reductions in December

When a home has been on the market for a long time with no or few cash offers, a common strategy is to lower the asking price. December has the highest percentage of price reductions in 2021 and 2022, at 31.81% and 34.46%, respectively.

Some sellers struggle to sell a house because there is so much available housing inventory between April and August; as a result, they sit after the rush has subsided.

This makes it a great time for buyers to swoop in between October and February to find a home and learn how to buy a house that has been on the market for longer than expected while also getting it at a lower price.

🚩Reasons Why the Winter of 2021-2022 was the Best Time to Buy:

  1. January 2021: The lowest listed sales prices are $329,242 and $376,559 in January 2022.
  2. Homes were on the market for 71 and 61 days in January 2021 and 2022, respectively.
  3. The highest percentage of price reductions occurred in 2020, at 31.81%, and in 2021, at 34.46%.

Worst Time to Buy a House

On the other hand, the worst time of the year to buy a house is between April and August. After the holiday season, many homebuyers will begin looking for new homes as housing inventory begins to rise. As a result, prices rise and bidding wars break out.

Listing Prices Increased

The spring homebuying season in 2022 began in January. The median sale price in January 2022 was $358,460, up 14.3% from the previous year. The median sales price in April 2022 was $424,405, up 15.5% from the previous year.

The rising sales price during the spring season indicates fierce competition among homebuyers looking for more listing options. This holiday season could be challenging for first-time homebuyers with bad credit scores compared to experienced investors.

More Houses Sold Above List Price

Following a trend of higher listing prices, more homes sold above the list price from April to August than at any other time of the year. In comparison, only 33.1% of homes sold above the list price in January 2021, compared to 56.3% in June 2021.

Furthermore, so far this year, 58.8% of homes have sold for more than in April 2022, a figure that is expected to rise throughout the season.

Buyers are likely to spend much more money than they anticipated, especially between the months of May and August, because home prices are higher during this time and are also selling above the asking price.

This makes the market even more difficult for buyers who are already pushing their financial limits to make a home purchase.

🚩Reasons why the summers of 2021 and 2022 were the worst times to buy a home:

  1. April 2022: The median sale price increased by 15.5% to $424,405 dollars.
  2. June 2021: 56.3% of homes sold for more than their asking price.
  3. June 2021: Has the highest rate of movement (13%).

Home Sale Data by Month

Overall, housing inventory has increased since 2020, rising from 3.8 million in December 2020 to 7 million in October 2021. The median closing price has also increased, rising from $365,300 in December 2020 to $436,700 in March 2022.

The median number of days on the market has decreased from 64 in December 2020 to 38 in March 2022, indicating that houses are being sold at a faster rate but at a higher price.

Prices, on the other hand, continued to rise, reaching a median sales price of $436,000 at closing in March 2022. Price increases may be caused by a lack of housing supply combined with rising mortgage rates.

Best & Worst Times to BuyMonth & Year Supply/ Inventory of Houses in the US (in Millions)Median Sale Price at ClosingBest & Worst Times to Buy
Best Months to Buy a HouseJanuary 20213.6$373,20071
February 20214.5$362,00064
Transition PeriodMarch 20214.2$359,60048
Worst Months to Buy a House April 20214.8$376,60040
May 20215.4$390,40037
June 20216.1$374,70036
July 20216.2$406,00037
August 20216.8$404,30038
Transition PeriodSeptember 20216.3$413,20042
Best Months to Buy a HouseOctober 20217.0$427,30043
November 20216.2$430,30047
December 20215.3$410,00054
January 20225.6$431,10061
February 20225.6$421,60047
Transition PeriodMarch 20226.4$436,70038
(Source: FRED)

The Top Home Buying in 2022 Tips

Buying a house can be an exciting experience. It can also be stressful and confusing, especially if you’re doing it for the first time.

1. Check your Credit Score:

Checking your credit score will assist you in determining your financing options; lenders use it, among other things, to set your loan pricing and determine your ability to repay your mortgage. The better your credit history, the better your chances of obtaining financing at the best terms and rates.

2. Save For a Down Payment:

To avoid paying private mortgage insurance, or PMI, you must save at least 20% of the home’s purchase price as a down payment. Some mortgage lenders provide no-PMI mortgages with lower down payments but expect to pay a higher interest rate.

3. Get a Pre-Approval Mortgage:

Getting a pre-approved mortgage is useful when making an offer on a home because it gives you a better idea of how much you can afford.

4. Find a Good Real Estate Agent:

An experienced real estate agent can help you find your dream home and negotiate with the seller on your behalf, saving you time and money. Not sure how to tell if an agent has the qualities you seek? Check out the list of top real estate agents compiled by us.

If you are competing against ten other bids, you want an agent who can make you stand out from the crowd and get you the house. Experienced agents understand the market and how to fulfill their client’s requirements. That’s the kind of person you should want by your side while purchasing a home.

5. Make an Offer:

Understanding how to make an appealing offer on a home can help increase the likelihood that the seller will accept it, bringing you one step closer to getting those coveted house keys.

6. Get a Home Inspection:

Many problems can go unnoticed unless you are well-versed in home inspection. If the problem is significant enough, you may be forced to change your offer.

So, whether you do a pre-inspection, inspection contingency, or post-purchase inspection, you should know what you’re getting into.

7. Negotiate Repairs:

Your home inspection report may reveal significant or minor flaws. Major issues will almost certainly need to be resolved before your mortgage lender will finalize your loan, whereas minor issues can frequently wait until you take possession of the home.

8. Secure Finance:

To get a final mortgage approval, you must keep your finances and credit in order during the underwriting process. You won’t want to open new credit lines or make other major purchases until the paperwork is signed and you’re ready to close.

9. Do a Final Walk-Through:

A final walk-through allows you to inspect the property before it becomes yours. This is your final opportunity to inspect the house, ask questions, and address any outstanding issues before they become your responsibility.

10. Close on a House:

When all contingencies have been met, you are satisfied with the final walk-through, and the closing agent has given the all-clear, it is time to make it official and close on your home. In this final step, your lender will give you the status “clear to close” on your loan.

RegionStates/CitiesBest Time to Buy a House
NortheastStatesBest Time Buy a House in Connecticut | Best Time to Buy a House in Maine | Best Time to Buy a House in Massachusetts | Best Time to Buy a House in New Hampshire | Best Time to Buy a House in New Jersey | Best Time to Buy a House in New York | Best Time to Buy a House in Pennsylvania | Best Time to Buy a House in Rhode Island |
NortheastKey Cities
MidwestStatesBest Time to Buy a House in Illinois | Best Time to Buy a House in Indiana |Best Time to Buy a House in Iowa | Best Time to Buy a House in Kansas | Best Time to Buy a House in Michigan | Best Time to Buy a House in Minnesota | Best Time to Buy a House in Missouri | Best Time to Buy a House in Nebraska | Best Time to Buy a House in North Dakota | Best Time to Buy a House in Ohio |Best Time to Buy a House in South Dakota | Best Time to Buy a House in Wisconsin
MidwestKey Cities
SouthStatesBest Time to Buy a House in Alabama | Best Time to Buy a House in Arkansas | Best Time to Buy a House in Delaware | Best Time to Buy a House in Florida | Best Time to Buy a House in Georgia | Best Time to Buy a House in Kentucky | Best Time to Buy a House in Louisiana | Best Time to Buy a House in Maryland | Best Time to Buy a House in Mississippi | Best Time to Buy a House in North Carolina | Best Time to Buy a House in Oklahoma | Best Time to Buy a House in South Carolina | Best Time to Buy a House in Tennessee | Best Time to Buy a House in Texas | Best Time to Buy a House in Virginia |Best Time to Buy a House in West Virginia
SouthKey Cities
WestStatesBest Time to Buy a House in Alaska | Best Time to Buy a House in Arizona | Best Time to Buy a House in California | Best Time to Buy a House in Colorado | Best Time to Buy a House in Hawaii | Best Time to Buy a House in Idaho | Best Time to Buy a House in Montana | Best Time to Buy a House in Nevada | Best Timeto Buy a House in New Mexico | Best Time to Buy a House in Oregon | Best Time to Buy a House in Utah | Best Time to Buy a House in Washington | Best Time to Buy a House in Wyoming
WestKey Cities

Final Take on Best Time to Buy a House

According to seasonal trends, the best time to buy a house is from October to February, when demand is low due to the holiday season. During these months, buyers can find homes at better prices, and there is more room for negotiating with the seller.

On the other hand, the worst time to buy a house is during the spring season up to early summer, when housing inventory is low, driving up demand and home prices. Aside from seasonality, other economic factors, such as mortgage rates, may have an impact on your ability to buy a house.

Frequently Asked Questions

How Long Does It Take to Buy a House on Average?

Buying a home can take up to six months. Obtaining a pre-approval mortgage can take up to a week, and you may spend up to three months shopping around. Submitting an offer and negotiating it could take another month or two while closing preparations could take even longer.

When is the Best Time to Buy a House?

The best time to buy a house will be determined largely by your location and requirements. From October to February, you can buy a house and save money, while April and May offer more options. When deciding when to buy, consider whether selection or savings are more important.

How Do You Decide Which House to Buy?

Consider the house's potential for renovation as well as its overall size. Think about whether it has enough space and storage for you and your family. If you have or plan to have children, make sure the house is located in a good school district.

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