According to some new research done by RealtyTrac, the best time of the year to buy a house is in the fall, specifically in October. After reviewing around 32 million sales since 2000, researchers have learned that buyers can expect around a 2.6% discount on a home in the month of October. It’s even better to buy on a Monday, with a further discount of 2.3%. And the absolute best day to purchase a home is October 8th, where buyers will see an average discount of 10.8%. Researchers believe these results are due to the low amount of buyers looking at homes during the fall and winter, which makes sellers more likely to settle on lower prices.
The rest of the results all included months in the fall or winter, such as February, December, and January. The only month not in the fall or winter was July, which puzzled researchers to a certain extent because summer is peak selling time. The worst month to purchase a home is in April, when buyers can expect a price 1.2% higher than the market value. Though, the worst day of the year to purchase a home is January 19th, where buyers may see a price 9.6% higher than market value.
Pro: Motivated Sellers
Those looking to sell their homes at this time of the year are motivated sellers. They’ll be more willing to reduce the price and negotiate with potential buyers. Sellers want to sell their house before the holidays so they don’t have to worry about showing the home or keeping up with everything that goes along with selling a home, such as open houses, tours, meetings with the realtor, and meetings with possible buyers. The family wants time at home to prepare for the holidays and they don’t want to be worried about their old home.
Con: The Holidays
What motivates buyers to sell their homes at a lower rate this time of year, the desire to have the property off of their hands in time for the holidays, may be a deterrent for you. If you have young children or a large family, moving into a new home and getting everything ready may be a bit of a hassle in time for the holidays and with school going on. While this concern may be valid, make a concise moving plan and settle into your new home easily. Once you’re there, you’ll be grateful for the discount you received!
Pro/Con: Limited inventory
Fall and winter are not high times for people putting their homes on the market. Real estate agents usually encourage people to wait for the spring, when they’ll get better payments for homes. This statistic means you’ll have limited choices when shopping for a home in the fall and winter, but you can more easily narrow down which houses you’re interested in.
When purchasing a home in the fall or winter, there will be less people looking to purchase a home, which makes a seller more likely to negotiate with you because you may be the only person looking at the property. If you start early in the season, you can take your time choosing a house and working out a great deal with the seller.