While one is looking to buy a property, he usually considers a number of factors that might influence his choice, including your budget and how long you want to remain in the house. When one should buy a property also depends upon the variety of market and economic considerations. Usually, the summer and spring season have a greater number of houses listed for sale, however, during the winter season, the real estate markets tend to see a slowdown. Nonetheless, the degree to which these distinctions impact the costs and alternatives available to you in a given location varies drastically.
Along with these factors, there are other considerable things as well that act as a decisive factor in forecasting the right time to buy a property. In this blogpost, we will explain all the major factors in detail.
If you want to invest in real estate, but you are not sure of the right time to invest your money, this blog is for you, so keep on reading!
Read More: Tenancy Instructions for Renters & Landlords – About Pakistan
Seasonal Changes
Seasonal changes play an important role in the home buying process.
Winter Season
In real estate market, the winter season normally shows a decline in purchasing activities. Due to the weather conditions, people tend to stay at home and often there is a sharp decline in purchasing as well as demand and supply of the market. Therefore, during the winter seasons, the prices of plots are usually on the lower side and there is a less chance of competitors getting you into bidding battle and it is easier to buy at low prices.
Spring Season
During the spring season, the owners of the property once more decide to put their properties up for sale. But, at this time there will be other people as well who wants to buy houses too. Therefore, one should be prepared to apply for mortgage application paperwork.
Summer Season
This boost in property purchase is then continued till summer and the real estate market, then unfolds significant levels of inventory as well as high levels of competitiveness. At this time there will be many options available for buyers and one should make a decision and put up an offer if they find the home of their dreams at the price they can afford. These options will be available for a short period of time and choices will be unavailable in the future due to the intense competition.
Autumn Season
The month of October usually marks the start of prime time to make a real estate purchase at best prices. People can buy new homes and they can move into their new houses before the start of New Year and establish themselves there.
However, as compared to other times of the year, the quantity of homes currently available on the market is still very large, and sellers may be motivated to make a sale.
Buyers usually get a better discount in the month of September on average, but this could not be the case for the home purchasers. The elements that usually impact the price of real estate can be rather local in nature.
Read More: Building vs Buying a House – Which one is a better option? – About Pakistan
Rate of Mortgage
Mortgage rates show upsurge in the beginning of the first quarter of this year. Interest rates are usually high due to which the cost of houses are higher and purchasing power is affected. One must look around for the best rates available no matter what rate is good and what rate is suitable for them and then make sure that they can afford the monthly mortgage payment after finding the best rate.
One must calculate everything before making a purchase with the help of any home affordability calculator.
Review Your Own Goals
Another important aspect that one should not neglect is to review their own goals and their choices. How long do they want to spend their life in this area and how long would they want to call this place they are going to purchase, a home.
While buying a house, one definitely wants to stay in the house long enough for growing property values and equity to compensate the costs of purchasing and selling the home that will include all the fees paid to real estate agents at the time of purchase and the costs of closing on a mortgage. In majority of the cases, it takes time to settle everything.
If you sell the house in less than two years and its value may increase during that time you will have to pay capital gains taxes. Therefore, you must always try to manage your finances and keep them in order. If you have made such a huge investment and purchased a home, you must be able to properly manage your expenses so that you don’t suffer financially.
Think about what you require in terms of housing as well. How many individuals are going to call this house their home? How long are you planning to stay at your new location? Explore several towns, cities, and neighborhoods in search of the ideal setting for your family, career, and other essential factors.
Also think about your housing needs. How many people will be going to live in this house? How long will you be staying in your new location? You must explore multiple cities and regions for the ideal setting for your family, career, and other important factors.
You should also consider additional costs like maintenance and upkeeps, as well as finances for unforeseen events. You should be capable of covering all the financial in catastrophic event like if one of your furnaces stops working or your taps leaks, you need some financial cushion to cover this.
Read More: Finishing Cost of 1 Kanal House in Pakistan – About Pakistan
Focus on Demanding Trends
If possible, try to buy a property when the market is favorable to buyers. If number of buyers are low, then there is less chance of increased prices as market is low and buyers are more likely to get a property at a lower price when there is less demand.
The opposite of a buyer’s market is a seller’s market, where prices are high when availability is low. In this scenario, the seller has the option of selecting different offers to review and then choosing the offer that best suits their needs.
If there are many bids at the table, a bidding war may ensue. During the bid, this means you risk losing your dream home unless you put up the highest possible offer to the seller. Whether the market favors buyers or sellers, knowledgeable realtors can help you find the best deal according to your needs.
Purchasing a Home Amidst Current Issues
After the COVID-19 pandemic, there has been a major impact on the housing market in 2021 and 2022, but property prices have yet to bottom out. When there are a smaller number of houses available for purchase, it is called a seller’s market. This happens when the number of people looking to buy a property is higher than the number of properties available for sale.
However, in most markets this is not the case. In fact, the surge in home buying can be attributed to historically low mortgage rates. If you can secure a low interest rate for the life of your mortgage, you can save thousands of rupees over the life of the loan. If you have a proven credit history and a stable work history, you have the opportunity to apply for a loan.
However, the price of housing can be higher. New buyers flooded the market as a result of lower mortgage rates. Nonetheless, real estate supply has not expanded proportionately over this period.
Read More: Plot Size Conversion for Real Estate in Pakistan – About Pakistan
This indicates that you may face stiff competition depending on your local market. If you’re looking to buy a property that was relatively easy to buy a year ago, but is now inundated with bids, you may need to act quickly. If your financial situation is stable enough, take advantage of historically low mortgage rates and consider applying for a loan. Even in this case, there is no indication that interest rates will rise in the near future, so there is no need to rush.
