The real estate market is open 365 days a year, but a common real estate myth claims that the spring and summer seasons are the best times to buy a home. Though homebuyers combat pending winter weather conditions and the start of the school year, there are several good reasons to buy a home in the fall.
Fall sellers tend to be more motivated than those who list early in the spring and summer months. Sellers are typically told to list during those months, because home demand is high and the market is usually flooded with buyers.
But by the time October rolls around, sellers whose homes were overpriced during the peak buying season tend to lower the asking price in order to attract buyers. According to a 2012 study by the National Association of Realtors, home prices tend to drop by an average of $7,000 after Labor Day. Midwest home prices fall by an average of $10,000 between August and September, while Northeast home prices plummet as much as $20,000.
Not only are asking prices likely to drop in the fall, but as a homebuyer, you may find that you have more negotiating ability when it comes to making an offer.
Fewer Buyers in the Market
Spring and summer are the most popular times to buy a house for many reasons. Families can move and get settled into their new home before school starts; spring and summer moving conditions are often more favorable, etc.
Because demand is high during the warmer months, the pressure is on for homebuyers. Buying in the fall could mean less likelihood of buyer competition, fast market turnover, and multiple-offer scenarios, giving you, as a buyer, the upper hand in the purchase process.
Realistic, Seasonal Perspective
Spring and summer sellers benefit greatly from the ability to showcase their home at its peak curb appeal. Buying a home in the fall may give you, as a homebuyer, the ability to take off the rose-colored glasses of homebuying. Cooler temperatures and pending inclement weather can give you a better sense of how a home functions during the fall and winter months.
Any part of the year can be a great time to buy, as long as it is the right time for you and your family. If you are thinking of purchasing this fall, get into touch with one of our mortgage bankers.
Looking for more information on buying a home? Our Mortgage 101 Handbook is the ultimate guide for First Time Home Buyers.