The Magic Question for Buyers: When Is the Best Time to Buy a Home?
When Is the Best Time to Buy a Home?
If you're looking to purchase a home in the upcoming fall season and are concerned about the challenges posed by high mortgage rates, soaring home prices, and limited availability, there's promising news on the horizon. According to Realtor.com, the prime week for buying a home in 2023 falls between October 1st and October 7th.
Within this seven-day timeframe, prospective homebuyers stand to realize significant savings, amounting to over $15,000 when compared to the peak summer home-buying season. This applies to a median-priced home valued at $445,000. Furthermore, opting for a home purchase during the fall instead of the summer affords you more time for thoughtful decision-making, as competition from other buyers tends to be less intense.
In addition to the potential financial advantages, it's anticipated that nearly 19% of new property listings will hit the market during this period, compared to the beginning of the year. This increase in listings will translate to a 17% rise in the overall number of homes available for sale, encompassing both new listings and properties that have been on the market for some time.
The Methodology Behind the Determination
Realtor.com conducted an extensive analysis, taking into account various housing indicators such as listing prices, inventory levels, new listings, days properties spent on the market, buyer demand, and price adjustments. This analysis spanned from 2018 to year-to-date 2023, with 2020 excluded due to the unique anomalies caused by the COVID-19 pandemic.
Emphasizing Mortgage Payments, Not Interest Rates
While mortgage rates have climbed from 3% to 7%, it's essential to remember that buyers don't purchase rates; they purchase mortgage payments. While rates may be beyond your control, you can influence your mortgage payment by considering factors such as buying a more affordable home or making a larger down payment to reduce your loan amount. Expert advice from mortgage consultants, like those at Prosperity Home Mortgage, can help you get prequalified and determine the mortgage payment that aligns with your budget.
The Bottom Line
Whether influenced by the rise in interest rates or the season itself, real estate agents are reporting that homes are not experiencing multiple offers or significantly exceeding their asking prices. Consequently, October is shaping up to be an opportune time for homebuyers.
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