Dave Ramsey has said that homebuyers will have a great year in 2025 if they can wait to buy property in the later months of the year.
Traditionally, August or September has been the best time to get on the property ladder, according to Ramsey, as prices tend to fall in late summer and early autumn.
There are fewer buyers looking for real estate at that time, and inventory remains high after a spring selling season.
The financial guru said in a blog post that buyers should avoid buying in the hot housing markets.
The worst time to buy would be late spring and early summer, due to an influx of potential buyers all hunting for homes, meaning an increase in competition.
Ramsey added, “Many homebuyers, especially those with children, want to purchase a home in time so they can move and get settled before the school year starts.”
According to the National Realtor’s Association, the best time to buy a home was September last year, when home prices had fallen by nearly $15,000 since July.
The financial guru said in a blog post on his website that buyers should avoid buying in the hot housing markets
Traditionally, August or September has been the best time to get on the property ladder, according to Ramsey, as prices tend to fall in late summer and early autumn.
Ramsey urges potential buyers to wait until the even colder months of the year if price is your main concern.
He added, “If for you, the best time to buy means getting the lowest price. Make sure you put on your warm woolen mittens before heading to screenings.”
As a final note, he also said that the best time to buy also depends on being financially solid to do so.
This means that you have no debt, an emergency fund for any unexpected costs and that the repayments on your house will not exceed 25 percent of your net salary.
It comes after he gave Americans blunt retirement advice about the benefits and pitfalls of a 401(K) and IRA retirement plan.
He said both plans are great ways to build wealth for retirement, but it’s critical to understand their differences and how they can work together before investing.
A 401(K) workplace plan is sponsored by an employer, he said, and often involves the company matching contributions taken from employees’ paychecks.
The money you contribute is tax-deferred, meaning you don’t pay taxes on it until you retire.
According to the National Realtor’s Association, the best time to buy a home was around September of last year, when home prices had dropped nearly $15,000 since July.
The Ramsey Show host is known for his blunt financial advice
A Roth Individual Retirement Account (IRA), on the other hand, is an account you can open yourself to save a certain amount of after-tax dollars per year for retirement.
“When you hear the word Roth, your ears should automatically perk up – because a Roth IRA allows your savings to grow tax-free,” said host of The Ramsey Show.
‘That means that from the age of 59 1/2 you can withdraw money from your account without having to pay a single cent in tax.’
With a Roth IRA, you also don’t have to take required minimum distributions (RMDs), which means you can grow more of your money over a longer period of time, Ramsey said.
When it comes to 401(K)s, the main benefits are the higher contribution limit (which is even higher for those over 50: $30,500 for 2024) and the fact that you’re investing in the account with pre-tax dollars, which reduces your income . tax bill.
“Probably the best thing about a 401(K) plan,” Ramsey said, “is that your employer can match your investment up to a certain amount. That’s an immediate 100 percent return on your investment.
‘Matching is not mandatory by the government, so not all employers offer it. If that’s the case for you, make the best of it. Don’t forget free money!’