When Is The Best Time To Buy A Home In Spokane Washington?
Ultimately the “best time” to buy a home in Spokane is going to be when you feel ready, are ready financially, & a home becomes available that fits your needs perfectly.
But if you were wondering how to evaluate when the best time to buy a home would be, there are generally 3 ways to look at it…
- Choosing the best month to purchase a home. There’s always a “best month” to buy a home or best season to buy. Even if the market is in a “down market.” In Spokane – this month is generally April or July.
- Choosing the best month when the economy & market is the strongest. Your local job market & the local economy can make a big impact on the type of home you purchase. Both of these will impact the purchase price of your home.
- Choosing the best time for you in your situation. Plan to buy a home when you are financially prepared & are emotionally ready to purchase your home.
When Is The Best Month To Purchase A Home?
In Spokane Washington, our real estate market normally increases in the total amount of listings around April and then again in July. In April we see an increase in the amount of homes available after the winter season is finally over. Home buyers are more likely to want to shop in the warmer months, rather than trudging through the snow & cold weather to view homes. We see another increase in home sales around July. The major reason being that the school season is over, and homeowners may need to move to another school district, or downsize the size of their home as their last son or daughter have finally moved onto college or out of their home completely. Home buyers seem to enjoy shopping for homes in the summer, rather than the colder months. This surge is home sales can sometimes last all the way into November!
Buy In November For A Better Price – According To Zillow
According to Zillow.com more home buyers are shopping in the Spring. A similar home that a homebuyer buys in March & May could cost you more than a home you bought in November or December. According to Zillow.com 26% of homes sold in March & May were purchased for over the listing price, while in November only 15% of homes were sold above the asking price. This data is according to a 2016 report conducted by Zillow nationwide.
Buy In April For More Options – According To Zillow
If you’re looking for more homes to choose from and don’t mind paying an extra premium, spring season & summer season are great times to purchase a home. According to Zillow the most amount of homes are available between April & June.
With more listing available on the market, you have more options to choose from, but there are also more buyers looking during this time. According to Zillow during these months there may be as many as double the amount of homes available.
Buy In August For Selection & Lower Prices – According To Zillow
According to Zillow using the same research conducted in 2016, August has the most price cuts while the inventory levels are still healthy. In 2016 price cuts were the most common between July and September. Additionally August is the final month in the time span where listings are most abundant nationwide. The highest level of inventory normally comes between June and August.
With more selection, normally means more buyers. Make sure you have a great agent that’s guiding through this process, especially in a market where multiple offers are common.
Is It Currently A Good Time To Buy A Home Based On The Economy?
There are many factors that can affect the housing market. Things such as interest rates, the job market, and the overall health of the U.S economy can impact the housing market. Locally your decision to buy may be impacted by the local buyer demand, the local job market, and the local rental market. If it’s cheaper to buy, than rent, it makes sense to buy.
With low interest rates home buying is inherently more affordable, it makes buying a home more affordable than before.
Here’s an example:
The current average 30-year fixed mortgage rate is right around 3.8% (as of September 2019). Let’s say you want to buy a home at $300,000 (the average price is Spokane is near $300,000 currently) with 20% down ($60,000). Your monthly mortgage payment (not including taxes, insurance, and other costs) can vary by more than $100 a month, just based on a one-point increase in mortgage rates.
- An interest rate of 3.8%, your monthly mortgage payment would be $1,118 per month
- An interest rate of 4.8%, your monthly mortgage payment would be $1,259 per month
With lower interest rates can also put more expensive homes within the reach of more buyers. Assuming you’re also able to increase your down payment to avoid paying private mortgage insurance.
Here’s an example:
With a 3.68% interest rate you could purchase a home up to $337,000 with a 20% of down payment for $1,256 per month.
With a 4.8% interest rate you could purchase a home up to $300,000 with a 20% down payment for $1,259 per month.
Local Market Changes
The idea behind being a smart home shopper is to almost always buy low, build equity, and then sell high. If you buy while home prices are trending upwards, it can be a great thing as you almost immediately will gain equity in your home. While nobody can predict the market, these are some of the factors that your real estate agent should help you indicate a good time to buy and to get an eventual great return on your investment.
- Real estate development happening in the area
- New restaurants and retail are opening nearby
- Your area is gaining popularity
- Home prices are steadily increased throughout the last 10 years