We're In A Buyers Market Lower mortgage rates haven’t caused an uptick in demand just…
The Deals Are Fancied In Autumn
A recently released study examined over 32 million single-family and condo home sales over a 15-year period. They found that, on average, October is the month when buyers get the best deal. That’s because in October the average sales price was actually 2.6% lower than estimated market values. The latest research data also suggest that most autumn is a great time for possibly scoring a home bargain. Redfin’s Demand Index—which measures housing activity prior to purchase—fell 11.9% year over year in August. This marks the sixth consecutive month of year-over-year declines. It also seems that the number of homebuyers requesting tours dropped 3.5% year over year; which makes it the third consecutive month of annual decreases. And the number of buyers making offers slipped 20.2% year over year in August; that’s the sharpest annual decline since Spring of 2016.
What The Experts Are Saying
Autumn seems to be the best time to buy a home all year for multiple reasons. The housing market is past the yearly boom of spring and early summer, when most homes receive multiple offers from buyers desperate to get a deal. Easing inventory pressures also allow home buyers to be more cautious in their purchases. Some sellers might feel the need to lower their prices on inventory that’s been sitting untouched all summer. What’s more, mortgage interest rates have been creeping up this year. Buyers may see their window for buying closing quickly if rising rates are a factor. So now is the time to get off the fence and lock in before rates go any higher.
Fewer Competing Offers
Depending on the market, there may also be fewer buyers out there during the Autumn. That means competing with fewer buyers. Consider that many home shoppers don’t want to brave the harsher autumn elements. Others, meanwhile, may choose to postpone their hunting until late winter or early spring next year.
Other Compelling Reasons
Another rationale for why now may be a great time to find your next home: Mother Nature. Colder, rainier weather can expose the flaws in an older home for sale. This provides a truer picture of what shape the home is really in. And discovering improvements to be made can give you bargaining power to ask for a lower price.
Additionally, fall is a prime time to pay less for appliances you’ll need to buy for your home. Consumer Reports says the period between Labor Day and the end of the holiday season—especially late autumn—is a great window for scoring appliance deals. Lastly, sellers may be more motivated to sell quickly in Autumn. The reason is the upcoming holidays: Many want to be settled in elsewhere before the approach of Thanksgiving, Christmas and other holidays they could be hosting or celebrating.
*This article does not represent legal interpretation or advice. This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. Seattle Mortgage Brokers, LLC NMLS: LO# 305371 MB# 761615