If you are in the industry you know. Fall and winter are the best times to buy. Here are some of the reasons:
1) While there are less homes on the market, the are also a lot less buyers looking when the weather is colder and the days are longer. Competition among buyers can be brutal in Marin and the North Bay, and your odds of getting in a bidding war as a buyer are far greater if you wait until the spring or summer months.
2) This fall and winter in particular are a perfect time for buyers, if they can still afford it. Lots of buyers are on the sidelines now that 30 year mortgage rates are hovering around 8%, which means there is even less competition than we typically see this time of year.
3) The best time to inspect a house is in the rainy season. Inspectors can find active leaks in the roof during the rainy season. They can also verify if and how much water comes under the house. You’ll know if there is a drainage issue if you buy during the winter. During the summer it's impossible to know the extent of these issues.
As a buyer you could be hoping, and waiting, for prices to fall next year. I can’t tell you how many buyers I’ve met over the last two decades who were waiting for that perfect time, only to get priced out of the Marin County, and out of the real estate market altogether. I’m not saying that we won’t see some adjustments in pricing in Marin over the next six months. It could happen, but if you try timing any market you do so at your own peril.
4) Wouldn’t you rather be buying when the market is softer, as opposed to when there are multiple offers and $100,000+ overbids? It does feel like the market is softer now than typically at this time of year. That’s why I think it’s the perfect time to buy. If there is a house that you find that you like, and can afford, it’s time to make a move.
5) When the market is softer, sellers are more willing to make concessions and work with buyers. If you wait until the market catches fire again, you’ll be looking at competing against multiple offers. Many of those offers will have no contingencies, quick closes and lots of money down. What’s stopping you? Are you concerned about the interest rates?
6) Interest rates may seem high currently, but historically speaking 8% is about average. If you buy now and the rates go up further you’ve locked into a good rate. If the rates go down significantly, then you can always refinance later.
7) Here are a few more timeless reasons to buy now:
a) Appreciation – Over time your new home will go up in value, which makes buying a home a wise long term investment.
b) Principal Payments – While you will be paying interest, you will also be paying the principle on your loan, meaning your debt will go down. When I pay my mortgage every month, I think of my payments as a way of saving money. My net worth goes up with each payment, as my debt goes down and my equity in the property increases.
c) Tax advantages – You can write off your property tax up to $10,000 (up until the ironically named ‘Tax Cuts and Jobs Act’ in 2018 the property tax write-off was unlimited), and you can write off all the interest you pay on your loan.
d) Pay your mortgage, not someone else’s