Now that school is in full swing, football season is going strong, and the weather is cooling off, the real estate market tends to cool off, too.
But fall is a good time to make a great deal on a new home. Current market conditions and affordability are favorable toward buyers in many areas. Experts say it’s wise to start shopping now and take advantage of this window, before the holidays and cold weather hit. Research your options, check out several different homes for sale, and get pre-approved: with the right planning, you could land your desired home for less and be moved in before 2020. Here’s why home buying in the fall can work to your advantage.
Autumn can be a great time of the year to search for and purchase a home. For one, there’s often less competition from other buyers between September and December. That’s because many buyers and sellers like to get their real estate business done before the start of the school year. That period has now passed.
The weather gives you an edge when house hunting. Potential buyers tend to favor warmer months, when they don’t have to brave the cold, or adverse winter weather while shopping.
Fall sellers feel pressure to close
Fall often produces more urgent sellers. Consider that most sellers list their homes in the spring and summer. People who missed that window and are listing now may face pressure: sell soon before winter arrives and most buyers go into hibernation. Sellers who listed in the spring or summer but still haven’t sold are feeling the squeeze, too. They’re likely willing to lower prices to unload their properties — and autumn buyers stand to benefit. Investors sometimes seek to close out their books before the end of the fiscal year and may price much more aggressively now than earlier in the year.
Average home prices are lower
Fall home buyers often see lower prices than those who buy in spring or summer as prices tend to decline between September and November. In the fall and winter, prices tend to drop by about one percent. Prices in the spring and summer they can rise by as much as two and a half percent, according to historical data from the National Association of Realtors. Additionally, the NAR expects the median price of existing homes to increase by 3 percent in 2020 — from $269,600 to $278,500. So ,if you wait until next year to buy, you’ll likely pay more for a home.
Record-low interest rates
This year, fall home buyers could lock in record-low interest rates. Rates are currently at or near three-year lows, and they’re expected to stay low through the autumn. That means the house you wanted to be in in 2018 or the first half of 2019 will be cheaper now thanks to the downturn in interest rates.
If you’re finally convinced that it’s the right time to buy, it’s time to get pre approved!