Here’s why this week is the best time to buy a home

Last month, the Fed cut interest rates, which is a relief for prospective homeowners who have suffered several years of rate hikes. However, since the Fed has indicated that it will likely continue to cut rates this year and into late 2025, many buyers are wondering when is the best time to close on a home.

According to Realtor.com’s latest findings, September 29 to October 5 is the best time to buy a home this year.

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Danielle Hale, Chief Economist at Realtor.com, explains that a significant drop in market demand drives prices down and gives buyers more time to make such a monumental decision.

With house prices and uncertainty among potential buyers’ main stressors, this week can provide a useful buffer.

When to expect lower demand and lower prices

Hale notes that market demand drops by 30% in late September and early October, which can mean a significant change in price.

“Our research shows that this week is the best time to buy as we see buyer demand in the property market falling and this creates an opportunity for buyers who are flexible with their timing and particularly those who do not need to sell as soon as first. time home buyers,” she said.

“They can take advantage of the fact that we have less demand in the market – 30% compared to the peak season – and that tends to lead to lower prices, which are expected to be down about $14,000 compared to the peak season and a longer period on the market. .”

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Buyers can also enjoy more time to think about their options and less pressure to make an offer than the peak spring season, which can be especially helpful for new owners or cautious buyers.

“Buyers will have more time to make decisions, which is a nice advantage for first-time buyers or those who are not as familiar with the process. It gives them more time to make what is, for many, the most important buying decision of their life,” she explained.

A couple is celebrating buying a new home.

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Understanding the Seasons of the Real Estate Market

“The real estate market has a lot of regular seasonal patterns,” she said. “So the fall is this time when we see a lot of buyers pulling back and not being as active in the housing market, which creates softer market conditions that we see leading to an opportunity for flexible buyers and who can enter. the real estate market.”

Hale explains that sellers like to take advantage of the renewed interest in the real estate market during the spring and summer, especially if they’re hoping to sell a home and buy another right away. Buyers enjoy a slower market during the fall, which works in their favor.

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“Spring is a time that is more advantageous for home sellers because they have a lot of buyers who are in the market for real estate in the early spring, and sellers tend to come into the market a little later in the spring,” she said. “So spring can be very competitive for home buyers and it’s a little bit more challenging.”

“For those trying to buy and sell simultaneously, there is a lot more activity that can make it easier to accomplish both goals in a short amount of time. So autumn is the best time to buy, especially for those who are only focused on buying and don’t have to consider selling.”

She notes that the reduction in interest rates is another sign that the housing market could start favoring buyers soon.

“The fact that we’re seeing mortgage rates come down in recent weeks because of the Fed’s big rate cut is just icing on the cake,” she said. “It’s a nice bonus to improve affordability as we move towards the best time to buy.”

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