There is a popular phrase that many people say ‘there is a right time for everything’. When it comes to the real estate world, this phrase holds true, with no exception. There is always the perfect time to buy or sell a property, you just have to keep your eyes open, and know when to realize when that time is. You just need to know how to differentiate between factors that will influence house rates.
Here are some of these factors you should look out for:
1. Interest Rates
It is common knowledge that the lower the interest rate for a mortgage is, the lower the payment you make will have to be. These rates do go up and down throughout the year, depending on a few other factors. So you should always keep your eyes open, and wait for the right time, when interest rates are low, as that is the best time to buy a house.
2. Economy
In simple terms: a bad economy equals to a bad real estate market. The two are directly proportional, when one increases, so does the other. But do not let this fact get you down, instead, switch it around. Because if bad economy means bad real estate market, then a good economy will mean that the real estate market will be flourishing. So wait for a time when job opportunities are at an all-time high, as this usually means that there are more people willing to buy or sell their property.
3. Supply and Demand
This works in both ways for a buyer and seller. If you are a buyer, you have to wait for a time where demand is low, so then house owners will not have too many offers on the table, and will be willing to sell to you for a lower price to get rid of their property and move on. However, if you are a seller, the situation has to be opposite. You must wait for a time when the demand is high. Because when demand is high and the supply is limited, then there will be more offers on one house, and you just have to wait patiently for potential buyers to outbid each other and up the price in an attempt to buy from you.
4. Seasons
This point may not make sense at first, and you probably would have never heard of it yourself, but the weather does play an important role in the real estate industry. Maybe not so much the weather, but what time of year it is, more importantly. The real estate industry tends to flourish during school holidays, as it easier for families to shift when they are on break. This is why summer tends to be the busiest time for buying and selling off houses. All you have to do is take all these factors into account, and try to pinpoint the best time to buy or sell a property, so you can benefit from it as much as you can.
