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Why Buying in the Fall Might be a Smart Decision
September 26, 2019
Autumn is a hot home-selling season and for good reason — actually a lot of good reasons.
Some things to consider:
Buyers pay 2.6 percent below the estimated market value when purchasing in October, says RealtyTrac, which analyzed more than 32 million home sales tracked across 15 years. A primary reason is fewer buyers, although housing supply may remain strong. With fewer people bidding on a home, owners often cut prices. This is also true when buying a new construction home. Builders are trying to end the year with strong sales and clear out inventory for the upcoming spring. And that means more incentives and pricing reductions.
Less busyThe spring selling season can be crazy for housing industry professionals. Realtors, appraisers, mortgage lenders, inspectors and title companies are all treading water to keep up with the many closings that happen within just a few short months. But in the fall, the workload is a little less, even for the busiest Realtor. And that means that buyers have easier access to the people helping them purchase a home and that appointments, inspections, etc., can be made on the buyer’s schedule.
Those moving into a brand new home will most likely need to purchase new furniture — especially first-time home buyers who will also most likely need new appliances. And for those not new to homeownership, it’s still hard to resist not upgrading your furniture, décor, electronics and appliances. And guess when the best time to buy those things? The fall.
Consumer Reports pegs September as the best time to buy paint and carpeting. Pricing on major appliances, cookware and televisions is at its lowest in December. And even general décor items enjoy reduced Black Friday and Cyber Monday prices.
Why to buy this fall
There are lots of arguments to buy a home in the fall, but there is one very compelling reason to buy this fall — mortgage interest rates. Interest rates are near historic lows, with the average 30-year fixed rate hovering below 4 percent. And economists have been predicting that number to edge lower.
So, reconsider a fall move. And just think — if you do it soon, you can be settled just in time for the holidays!