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Late August traditionally gives you a great opportunity to find deals, because sellers slash prices even further. Don’t blow off the houses that have languished on the market during the spring and summer selling seasons. Regardless, a home that has been on the market for an extended period may end up being a great find.
The U.S. is currently facing a low-key housing crisis wherein roughly a third of citizens don’t earn enough to afford the average rent based on the recommended 33% of your income going to housing. After a home has been sitting on the market without offers or insufficient offers, a typical strategy is to reduce the asking price. December boosts the highest percentage of price reductions at 31.81% in 2020 and 34.46% in 2021. Whereas in June 2021, prices increased by 28.13% and 22.3% in April 2022. Read along as we present statistics that explain why certain months are routinely better times to buy a house than others, along with home sales trends and valuable takeaways for homebuyers.
A More Manageable Market Pace
This week represents a balanced view of market conditions favorable for buyers. The typical seasonal trend expects this week to have 17.6% more active listings than the start of the year. Fortunately for buyers, some relief may be on the horizon as the season quickly approaches the best time to buy — the time of year when the balance of market conditions favor buyers the most. According to our analysis of realtor.com listing data since 2018, the best time to buy a home this year will be the week of October 3-9. Since the start of the pandemic, buying a home has been a challenge for many shoppers.
Pre-pandemic, July was typically the peak for homebuyer demand, as measured by views per property on Realtor.com. The 2021 housing market shifted the peak earlier into the spring, with continued high demand in the summer, as buyers hustled to beat rising prices and mortgage rates. The spring and summer tend to have the highest concentration of shoppers looking at each home for sale, which translates to more competition for buyers looking to lock down a home. As inflation concerns mounted, the Fed raised interest rates, and mortgage rates climbed. By the end of August, active listings were up 87.3% compared to the start of the year.
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This is the longest streak of year-over-year growth ever recorded, spanning 127 months. The percentage of respondents who say mortgage rates will go down in the next 12 months increased from 6% to 10%, while the percentage who expect mortgage rates to go up decreased from 65% to 62%. The share who think mortgage rates will stay the same remained unchanged at 24%. As a result, the net share of those who say mortgage rates will go down over the next 12 months increased 7 percentage points month over month. Typically it’s winter because people aren’t usually looking to buy a house once cold weather and the holidays arrive.
In addition to active inventory on the market, the addition of fresh listings entering the market tends to give buyers more options even into the fall. The best week historically has added 4.2% more listings than the average week and 24.5% more than the start of the year, however this is another metric that may not behave in typical fashion in 2022. According to the most recent Realtor.com data, the first half of 2022 far surpassed this expectation. As sellers increasingly took the opportunity to cash in on the red hot market, new listings nearly doubled over the beginning of the year by mid-June. However, as affordability challenges have ushered in a cooling market, waning seller enthusiasm led to a drop off in new listings in August.
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Existing homeowners may benefit from lower interest rates than those offered right now because they already have mortgages. Their monthly expenses could rise dramatically as a result of the purchase of a new property. Lower interest rates can also put more expensive homes within reach for some buyers, assuming you’re also able to increase your down payment to avoid paying private mortgage insurance. A seller's market is when there are more people house hunting than there are homes for sale.
For many first-time homebuyers, it doesn't matter if loan rates are too high, if there aren't enough homes available, or if you don't have enough money in the bank. First-time buyers can accomplish the American Dream of homeownership without a 20% down payment. The government offers several mortgage schemes with minimal or no down payment, as well as down payment assistance programs. The cumulative effect of these sharp rate increases has cooled the housing market and caused the economy to slow, but has done little to lower inflation. Although Fed doesn't control mortgage rates it has a ripple effect on the mortgage industry.
When is the Best Time to Buy a Home?
About 67% of survey respondents expect mortgage rates to increase, and there are rising concerns about job stability and escalating housing prices. Some homebuyers will find the current market conditions easier, while others will find them more difficult to buy a house. The current upward trend in home prices is likely to continue throughout the year, which could price out some prospective buyers. If the number of homes to choose from is less important than the price you’re willing to pay, then winter is the best time for you to buy a house. Specifically, the month of December as the market sees the least amount of competition around the holiday season. Home owners are hesitant to sell in December because this would mean likely moving over the holiday season.
The recent rate hike will correspond with a rise in the prime rate and immediately send financing costs higher for many forms of consumer borrowing. On the flip side, higher interest rates also mean savers will earn more money on their deposits. Since more buyers are shopping in the spring, a home you buy between March and May could cost you more than a similar home bought in November or December.
Real estate agents have more free time to spend with you in the autumn months because of a decline in the number of sellers. Also, the best time to purchase a home isn’t always when inventory is highest or when prices are the lowest. These are important factors to consider, but broader market conditions and your personal needs also play a significant role. Local tourism trends can factor in as well, depending on the market. This is a common theme for Mary Lou Wertz, founder of Maison Real Estate in Charleston, South Carolina.
According to a Zillow analysis of 2016 listing and sales data, 26% of buyers paid above list price in April while in November, just 15% of homes sold above asking price. The window between late fall and early winter is the best time for buyers on a budget. The week with the highest overall score was designated as the best time to buy.
Both the beginning and end of the year are considered the offseason, so you’re likely to find deals at either time. The market has changed so much that the old rules of buying a home no longer apply. While home insurance typically covers a variety of common hazards, don't get too confident—it may not cover every mishap that comes your way. The Williams Sonoma holiday catalog is always filled with an enticing range of kitchen items and gourmet food, from reasonably priced cookware and holiday...
The reasons why they are so affordable are actually very logical and stem from the very nature of mobile homes. Yes, they do target the affordable housing market, but that’s not the only reason they have remained cheap compared to real estate. Since there is so much inventory available between April and August, some sellers have difficulty offloading their property, which leaves it sitting after the rush dies down. This makes it a great time for buyers to swoop in between October and February to find a home that has been on the market for longer than expected, as well as get it at a lower price. The longer a home stays on the market, the more opportunities buyers have to search and purchase the home they desire.
Is it a Good Time to Sell a House?
New listings in these areas are typically up 3.4% compared to the average week. During the best week, buyers can expect listings to rise beyond what they’ve been seeing so far this year. This year, inventory will likely continue to be strong through the best week to buy.
The week of September is the best time to buy for New York, Los Angeles, Chicago, Seattle and Minneapolis metropolitan areas, among others. Nationally, the best time to buy a home is the week of September 25 – October 1. Winter might be the cheaper time to buy, but you'll also face a more limited inventory. Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage. It’s hard to overstate the importance of personal readiness when determining whether you should buy a house.
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