Why is summer the right time to buy a house?

Property purchase is a major financial decision in a person’s life. When deciding the right time to buy a property, people usually consider factors such as one’s financial situation, property prices, home loan interest rates, etc. Besides, some people prefer certain times of the year, such as summer or the festive season, which present ample opportunities and attractive offers from sellers. If you plan to start your homebuying journey this summer, we explain why it may be the right time.

See also: Is selling your property in festive season a good idea?

Do seasons impact property purchase decisions?

Property purchase decisions are mostly influenced by the demand-supply dynamics. However, the impact of seasons and their influence on buyer behaviours cannot be overlooked. Generally, real estate activities become slower during the winter months and pick up with the onset of the summer season. This period could also mean limited options and higher demand from buyers, which may impact property prices. Thus, understanding the effect of seasons on the real estate market is important for buyers and sellers alike.

Further, speaking of seasons, the weather plays a key role in influencing real estate activities. While extreme weather disrupts construction activities, summer is when construction work sees faster completion. Sellers utilise this time to undertake necessary repairs or renovation of their homes and list their property for sale.

Location as a key factor influencing property buying in summers

Location is a big factor to consider when understanding homebuying trends in summer. Typically, south and west India see an increase in homebuying activities since more festivals are observed in these areas than in north India.

Why is summer the right time to buy a house?

Auspicious festivals and attractive offers 

The summer season in India, from April to June, coincides with some auspicious festivals. Many homebuyers look forward to this time to buy their dream home. In India, auspicious timings and cultural and religious beliefs are given a lot of importance. For example, festivals such as Gudi Padwa and Akshaya Tritiya are considered auspicious and purchasing a property on these days is said to brings good fortune and prosperity for the buyer.

More importantly, several developers come up with attractive festive discounts and exclusive offers to attract potential buyers. Further, banks and financial institutions also offer lower interest rates on home loans during festivals.

Ideal weather for property visits or relocation

Summers have warm and longer days, which make these months ideal for undertaking property visits, especially compared to the rainy months. With daylight available for an extended duration, people may find it convenient to visit properties after work. They can also inspect the neighbourhood on the same day, enabling them to make faster decisions.

Moreover, in India, vacations begin in most schools around this time, allowing families plenty of time to check out properties. With the school year beginning for children, summer may also be the right time for families to relocate. So, families planning to purchase a property in another city may consider summer as the ideal time for packing and moving.

Tax savings at the end of the financial year 

In India, summer coincides with the end of the financial year (March) and the start of the new financial year (April). According to tax experts, March is the time when taxpayers may make key investments to reduce their tax liabilities. During this time of the year, banks and financial institutions may also offer special schemes or offers for homebuyers.

Cheaper moving and packing costs

Before the demand picks up, potential buyers could utilise the time to plan their move. Owing to the low seasonal demand, there are higher chances of getting discounts on moving and packing services.

Increase in listings from sellers 

Preparing a house for sale or home staging is a crucial part of the home selling process. Many property owners utilise the spring or summer months for repairs or renovation of their homes. Once the house is ready, they list the property to attract prospective buyers. Hence, there could be a significant increase in property listings, presenting more options for potential buyers to find their dream home. During this time, developers also announce new projects, offering newer opportunities for home seekers.

Disadvantages of home buying in summers

Extreme weather: While the availability of daylight and other aspects may be considered by some, the scorching summer heat is a deterrent for many. Instead of property visits, some prefer to utilise the summer vacation time and go on holiday with family.

Limited festivals: With fewer festivals, particularly in north India, the summer months tend to see slower market activities, especially compared to the festive season in the later half of the year. Hence, many buyers are willing to wait and invest in new properties that developers offer, with attractive discounts, during peak festive seasons.

Higher ask price by sellers: Due to higher demand among buyers and the slow market, property sellers may ask for higher prices to maximise their return on investment. Thus, property buyers may have to spend more if they plan to finalise a property during this period.

Housing.com News Viewpoint

While home buyers need to consider several key factors, such as their budget, property needs, market situation, etc., they also need to be aware of how seasons influence real estate activities.

Is buying a house in summer a good decision? The answer will depend on your priorities. It may be the best time for you if you are planning to move to a new city or locality within the same city. This could mean cheaper moving expenses and convenient weather for shifting.

However, if you are looking for attractive investment avenues and are willing to wait, then you can utilise the summer months for house-hunting and shortlisting properties and finalise the purchase when the market conditions are favourable.

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