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The last 18 months have been some of the most tumultuous in the history of our great nation. To many, these months have meant misery, stress and financial ruin. To others, they have meant an incredible opportunity to prosper through the purchases of heavily discounted stocks and real estate. Then there are those in the middle, those afraid to get their toes wet or otherwise take a leap and get into the home of their dreams at a price they might never see again.

For those in the middle, torn on what will likely be the largest financial decision of their life here are a few basic points to help you decide:

1. Interest Rates at Historical Lows – With interest rates consistently hovering around 5%, the interest costs associated with purchasing a home are greatly mitigated. Over the life of a loan the ability to lock in at 5% for 30 years can save tens of thousands of dollars on a standard loan and hundreds of thousand on a jumbo.

2. Rates Adjusting – In the early 2000s, many consumers purchased homes that were well beyond their means via interest only loans or loans with very low variable rates for a short duration. With many of these loans ending their variable term and moving into fixed rates, many homeowners will see their mortgages increase by up to 50%. The net result will be a buyer’s market depicted by more sales, more inventory and more foreclosures.

3. Starved Home Builders – With new construction starts just below 500,000 homes nationally in 2009, builders are trimming their margins in an effort to stay afloat. While many construction costs are variable and decline as construction slows many fixed costs such as land remain until units are sold off.

4. Speeding of Short Sales – Previously “short sales” had been anything but short with many offers taking months to get a response from the bank. The net result was vacant properties, lost revenue and TARP bailout of banks. In an effort to eliminate this waste in banks, the government is prodding the banks to improve the timing on short sales and make them a smoother process. For those buyers willing to get involved who can still wait a little while on a bank response, there exists a tremendous opportunity to acquire real estate at prices considerably lower than current foreclosure prices.

5. Banks aren’t Lending – For those in the supreme position of being able to purchase without a mortgage, the time has never been better. Banks unwillingness to lend money the last 6 months has not only helped drive prices down, but also made cash deals that much sweeter. For sellers in a tough position many would rather take the promise of cash today at a lower price point than waiting what could be months for a bank loan to fund the transaction.

Ultimately, the decision to buy will be your own, but remember real estate is rarely a losing bet over time and while nobody can predict the bottom buying in 2010 will guarantee you are buying off-peak.

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You may not think that there are best seasons to buy or sell your house. However, there is. Spring, and the warm weather that comes along with it, brings a season of change. Literally, people are more prone to buy and sell homes during this season for several different reasons.

People have more spare time during the spring and summer months than they would normally have during busier seasons of fall and winter. The weather is warmer which makes moving more convenient for those looking to buy a home. It also makes showing the property for prospects easier as well. Buyers are often looking to make a move during the summer period before school terms begin, which is another big reason families tend to move during the summer.

In addition to the warmer weather, people are often receiving their tax returns during the spring and summer months as well. This makes getting a down payment for a home much easier than it would during other months. The sales of houses generally stay steady during the summer, and drop around the busier months of fall.

It is true that as a buyer you may have a larger variety of houses to choose from in the spring, but you’ll also have more competition. This means that sellers are more likely to keep to their asking prices, as opposed to months when the market is not as hot. Also, if you are looking for a mortgage, you’re more likely to get a better deal when you apply during off-seasons.

During off-seasons sellers are more likely to negotiate on price since there are not as many offers. You may not have a large variety of options in homes, but this does not mean you will be limited in any type of way. There are still plenty of homes for sale during this season as well.

If you plan to buy a new home, make sure to put the one you want to sell up on the market as far in advance as possible. This will help reduce the stress of selling the house due to time constraints and financial pressure. You simply do not want to have to pay two mortgages simultaneously.

You may stumble upon good deals during the end of fall. This is the period when sellers who did not get the price they wanted during the spring and summer for their property are letting go of the non-negotiable policy they held before. This may mean you’ll be able to get a deal on a property, that was previously held at a non-negotiable price.

As a seller, if you do not unload your property during the summer months consider listing the property during the winter holiday season. This may not sound like a good idea, but during this time you have already prepared your house for the holidays, so it could be just as easy to show during this time. The house is already prepped for company, which can make it a good time to show prospects. Best seasons to buy or sell your house all typically relative to your circumstance. Find out what is best for you and use whatever season you are in to your advantage.

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While most people are accustomed to shopping for homes between Memorial Day and Labor day, that may actually be the worst time of the year to buy a house. The best time of year to go house hunting may be the dead of winter, rather than the summertime.

Most houses are bought and sold in the summer for a good reason. That’s when children are out of school. Parents understandably want to avoid disrupting their children’s’ lives if they can possibly help it and moving when school is out of session is a big help towards avoiding some trauma.

Granted, one doesn’t always have the opportunity to shop for houses at one’s leisure; many people move because of job transfers or job changes, and with those, you pretty much have to move when the even occurs. But if you have control over when you start house hunting, you might do better to wait until the snow comes. Why is that?

The summer creates a seller’s market. Buyers are working on tight schedules; they want to get settled into their new houses before school starts again. That being the case, sellers have an advantage, because most of the people who are shopping in the summertime want to get settled quickly. The opposite is true in the winter, when there are fewer homes for sale and far fewer buyers. Most people who have houses for sale in the winter months do so out of necessity. At this time of the year, the buyer has an edge, as sellers are more likely to be looking to sell their home quickly from a much smaller pool of potential buyers.

As such, buyers who shop in the winter may find sellers to be more flexible. They may be willing to haggle a bit more on the price, they may be more willing to allow concessions for paint or carpeting, and they may be more flexible on a closing date. All of these things work to the advantage of the savvy home shopper.

If it suits you to do so, the winter is a great time to buy a house.

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