Moving house is one of the most significant decisions we can make. It’s a commitment that requires careful planning, research and financial preparation. But is there a right time to do it?
Well, that will depend on several factors, including market conditions and your specific personal situation. In this article, we’ll discuss aspects that influence the best time to buy (or sell) a house and provide some tips to help you make a well-informed decision.
Is there an ideal time to move house?
Obviously, the answer to this question depends a lot on each case. There may be specific needs that require you to move house at a certain time, possibly even as a matter of urgency.
But while you have some time to make the best choice, be aware that there is some seasonality in this market, pointing to a higher volume in the spring and summer seasons. These are, in fact, the two times of year that seem ideal for doing business in real estate.
In the table below, we can see the volume of residential sales from the most recent statistical indicators available from the National Statistics Institute (October 2020 to September 2021):
As you can see, there is a clear increase from the beginning of spring to the end of summer. The explanation is not particularly objective or rational, but it could be related to greater mental availability on the part of both buyers and sellers. This perspective is reinforced if we also look at the search trends on Google Trends (tables below):
Trends in demand for real estate portals
Trends in demand for real estate companies
In any of the tables above, it seems clear that there was a drop in demand at the end of the summer, with a recovery trend in February/March, thus confirming some seasonality in the sector.
Spring on the front line
In fact, several studies even indicate that spring is the best time to put a house up for sale. And, in fact, this seems to be in line with the results of the statistical tables mentioned above.
In spring, the houses become more inviting, benefiting from more natural light, and the gardens and surrounding areas are in bloom at that time. The change to daylight saving time also extends visiting hours a little, which is always preferable.
International studies, particularly by the American consultancy Zillow, indicate that the first half of May is when there is the greatest pressure of supply and those who advertise at this time are able to sell their house 18.5 days faster. But the ideal period, says the company, extends throughout the spring.
In the summer, there is usually some decline in “traditional” domestic demand, which tends to be offset by other market segments, such as immigrants who take advantage of their return to the country to do some business or even tourists on vacation who may also be looking for opportunities.
In the fall, there is usually a drop in the number of properties available and also a certain willingness to move house, but the weather still makes it easier to visit. The worst time, according to studies, is winter, especially at Christmas time, when people are focused on the typical festivities of the season.
Price variation
Regardless of the most favorable times for the real estate business, you should always take price variations into consideration. The last few years have been particularly expressive in terms of increases, but the tables below, taken from a report by the Idealista Portal, show that, even in a scenario of continuous growth, we find slight inflections around the third and fourth quarters (especially visible in table 2, relating to the average value of transactions).
What should I consider when moving house?
There are several key aspects to consider when planning a house move. Considering the different nuances will help you make a decision you won’t regret in the future. Take them into consideration:
Market conditions
One of the most important factors to consider when moving house is the real estate market conditions themselves, which are constantly changing and can have a significant impact on the cost of a property.
To determine the state of the market, you can look at trends in house prices, the number of houses for sale and how long they have been on the market. A “strategic partnership” with a trusted advisor can be an important alliance for making the best decisions, as they have access to market data that is not available to most people.
Also evaluate the financing conditions. High interest rates, along with resilient spreads, significantly increase the value of the installments, which can affect your effort rate and the future fulfillment of your commitments. In this regard, also consider opting for fixed rates.
The personal situation
Another factor to consider when moving house is your personal situation. Your lifestyle and career can influence the decision to buy or rent a house and what the profile is. Also think about future plans for the family. If you’re planning to have children, include this in your plans for moving house.
If you have a stable job and the prospect of staying in the same place for an extended period of time, buying could be a good choice and even a good investment. If, on the other hand, your professional situation is more unstable, then renting may be the ideal option.
Financial objectives
Your financial goals are another important factor to consider. In the case of a purchase, it’s important to assess the budget available for a down payment, the installment of a loan and also consider additional costs such as property purchase taxes and maintenance, including IMI, insurance and condominium.
Before you start looking for a house, it’s essential to determine how much you can afford, taking into account your income, expenses and savings to create a realistic budget. Don’t forget to take into account other costs, such as moving expenses or maintenance and repairs that may be needed on the property.
Location
Research locations thoroughly, not limiting yourself to just one area, unless you’ve already decided where you want to live. Evaluate the average price in these locations and also consider aspects such as proximity to your workplace, ease of parking, proximity to schools for your children and services available nearby, such as supermarkets or pharmacies, for example. Visit the neighborhoods at different times of the day to get a better idea of the area.
The logistics component
Having considered the most strategic factors, it’s time to think about “operationalizing” the house move. And here, too, you need to consider a number of things, starting with finding a reliable transport and removals partner.
On the other hand, you may well need to store your belongings safely during the process. In this case, you should look for a self-storage operator that is well-established in the market and guarantees essential aspects such as proximity and centrality, ease of access at any time of day, support staff and sufficient variety of space capacity to adapt to your real needs.
These are some of the features you’ll find at Perfect Space, a specialized company that offers warehouses in central locations in the two main district capitals, Lisbon and Porto. For more information, don’t hesitate to contact us: