The best time to buy a house is usually a period of number of months encountered every five years or so. The reason for that is, there is commonly a cycle, if not a vicious circle, in the prices of commodities during a span of said many years and house prices are affected by the commodity prices as well as by any other economic indicator.
Supply and Demand Equilibrium
One of the major criteria can be said to never change, which is supply and demand equilibrium. So, if there is more supply than demand, one may expect the prices to be lower than usual and that would be a good time to buy if there is a need to buy. Other factors may include governmental incentives, foreign investors, foreign exchange index, political stability concerning safety, economy, liberties, etc and natural stability regarding earthquakes, floods among other disasters. However, it would be probably a very safe bet to say that the interest rates would be probably the other most important factor.
Interest rates are determined by a number of complicated factors, which already include the elements of political situation of a country as well as elements of its economical situation. Considering a commodity such as a house, which is not like other commodities that people buy or sell every day or the other but more like once or twice a year, it makes sense why interest rates would be of such importance, because people usually buy a house not in cash but through a loan received from a bank. Therefore, the season, when one get the most appropriate financing for a house would be the best time to buy and that does not happen all the time, so the house financing sector should be actively followed.