When is a good time to buy a home?

Anytime is a good time. Depends when you are ready

Have you ever heard from a real estate agent saying that it’s not a good time to buy a property? Probably not. It is a basic economics of supply and demand, when there is a seller on the market with a right price, there will be buyers waiting. Keep in mind that if you feel the price is a bargain, most likely other people would be thinking the same, and you still have a competition. Can I time the market? Yes you can, but timing the market is extremely difficult. Everyone wants to buy at the lowest price before the property prices go up. The truth is, no one has the crystal ball to know when the bottom price is. Until they see the bottom, the opportunity has already passed. It takes an average 3 month to find a suitable property, and in a rising market, you will find yourself competing with multiple buyers and often you will expect to pay a premium to secure the deal. An indicator often used is the Action Clearance Rate. Below is an example of the Sydney clearance rate and auction volume. When the auction clearance rate is above 70%, you know it’s a sellers market, there are more buyers out in the market compared to the numbers of properties available. You will have a lot of competing buyers, especially emotional bidders who often go above and beyond their target price. In order to secure a deal, you might need to prepare to pay more. When it’s below 50%, then it’s a buyers market. There aren’t many competing buyers, but often there aren’t many options in the market as many sellers might also decide to wait till the next booming cycle. When is the time to buy? So we know where there is no “best” time, or “worst” time to buy property as you can’t possibly time the market. The best time for you to think about buying a home is when the situation changes and you have everything in order. Reasons why people decide relocation is often around their personal needs. Such as: Need more space to cater for a growing family Upgrade to a modern home New job in a different area or different state Empty nest as kids moved out and no longer need all the extra space Choosing to move in with a partner, or move out from separation Move into a catchment area for schools Change of scenery/lifestyle Changes in the surrounding area Moving house can be stressful and time consuming, it is best to plan early, and get your finances in order. Know what your borrowing limit is and set your maximum budget before you start looking and negotiating with a real estate agent.