Advantages of Buying a Home in the Fall
As autumn arrives, you can look forward to falling temperatures and falling home prices, which makes it a great time of year to buy a starter home.
According to MarketWatch, the inventory for starter homes makes for an extremely attractive situation for buyers, namely the trend for lower prices, when the fall arrives.
A starter home is defined as a home in the lower third of a market’s valuation, something that’s affordable for median-income earning workers. MarketWatch lists these advantages for anyone who’s in the market for that type of house:
- The inventory increases by about 7% in the fall months compared to the spring;
- Listing prices (how much the seller is asking for the home) are about 4.8% lower in the winter and 3.1% lower in the spring than in the summer;
- Of the largest 100 metro areas, 70 of them find October to be the peak time to buy a starter home, followed by November and December.
- More inventory of homes means less competition to buy one, and therefore there’s more time to do inspections and more time to consider the home before putting an offer on it.
Here’s the math for anyone buying a house at its listing price at 4.8% lower by the time winter comes:
Let’s say you’ve bought an existing home at May 2019’s median price of $277,700 according to the National Association of Realtors. You’d pay $264,371, or $13,329 less.
MarketWatch reminds anyone in the real estate market that summer is usually the most expensive time to buy a home, particularly in June and July. So, if you can, plan your home purchase for a time that more typically will benefit you and your budget.
Take your first serious step toward owning a home by applying for a pre-approval on a mortgage. A pre-approval can lock in an interest rate, and it shows a seller that you are a qualified buyer who is prepared to make a home purchase.
Loans subject to credit approval. Certain restrictions may apply. Rates and terms subject to change without notice. RBFCU mortgage loans are available only on property in Texas. NMLS# 583215.
This article is intended to provide general information and should not be considered financial advice. Please consult a financial professional for more information.