When is the Best Time to Buy a House in Boston
By Sean Creamer on May 19, 2023
Timing can be everything when buying a home.
This concept is especially true in Boston, where seasons and real estate trends can instantly affect the housing market. Factors like the age of a home, where you are looking, and inventory levels can all influence whether you will find a good deal or overpay for a home.
It can be challenging for buyers to know when to start a home search, especially if they are beginners. To help homebuyers get off on the right foot, our team at Prevu Real Estate put together a guide for figuring out the best time to buy a home in Boston.
Seasons can affect homebuying trends
One of the biggest things influencing homebuying in Boston is the weather. Boston has cold winters, making a move challenging.
Historically, buyers tend to buy and look for homes in the early spring, extending through to the summer. Generally, the highest prices hit the market in September. By the time fall rolls around, most buyers have ideally moved into their homes.
Prices can peak in the late spring, so if you see a house with a good price point, do not wait to place an offer. But seasonal trends can change on a whim depending on employment and interest rates.
You are financially ready for a purchase
Sometimes, the best time to buy a home is simply when you can afford one.
Not all buyers have the luxury of timing the market. Some folks have to make a home purchase when moving for a new job or if someone has a family and needs to get the kids ready for a new semester.
Regardless of the why, buyers should have substantial savings set aside before they decide to purchase a home. Down payments can total 20% or more of the purchase price of a property. Closing costs add up quickly as well.
You can secure a commission rebate
As you figure out the best time to buy a home, you will want to ensure your budget is ready and know where in Beantown you want to live. Working with a buyer’s agent can help you check those items off your list much quicker.
An expert local agent can help you nail down your target region and budget for purchasing a house. But some agents can take their service to the next level and offer you a commission rebate at closing.
Sometimes called a commission refund, this tool puts money back in your pocket when you get the keys to your new home. Traditionally, the seller and listing agent agree on a commission fee, a portion of which gets shared with your buyer's broker.
If you work with a broker from Prevu Real Estate, a percentage of the buyer's broker commission is provided to you in the form of a commission rebate. For instance, if you buy a home in Newton for $1,500,000 with Prevu you could potentially receive a rebate up to 1% of your home’s purchase price, or up to $15,000 in this example.
Each time a homebuyer looks at a home on the Prevu platform, it shows homebuyers how much they can potentially receive with the company’s Smart Buyer Rebate. Knowing where you stand to save can help you plan a more effective budget, giving you more confidence as you figure out the best time to buy a home.
When interest rates are lower
If you have the luxury of waiting out the market, one of the best times to buy a home is when mortgage rates are low. A lower interest rate can potentially save you thousands of dollars over the term of your loan due to the low cost of borrowing.
While waiting for a great interest rate is ideal, this isn't always possible. But just because you buy a house with a higher interest rate today, it does not mean you can’t refinance later on.
The phrase, "date the rate, marry the home," rings true, as you can sometimes refinance your mortgage loan down the line if rates drop in the future.
Even if you get an adjustable-rate mortgage, you have a degree of flexibility with the upfront interest rate. The initial interest rate on an ARM typically gets set below the market rate compared to a fixed-rate loan. But after a predetermined time frame, the rates rise or drop depending on market conditions as time goes on.
