The real estate market is changing, and buyers have more opportunities to find a good deal. According to Realtor.com’s analysis, the first week of October is the best time to buy a house in 2023.
More homes on the market: Based on historical trends, the beginning of October typically sees a higher number of active home listings, up to 17% more than earlier in the year. This means buyers have more choices and can negotiate better prices.
Price reductions: House prices have finally lightly reducing. The average home price in the U.S. decreased by 0.9% in June and July compared to last year. This means buyers can save money when purchasing a home.
Less active market: The market is slower this year than in previous years, which is good for buyers because the best time to buy is when market conditions are in their favor. According to Realtor.com’s analysis since 2018, the best time to buy a home this year is the first week of October. Homes are staying on the market longer, giving buyers more time to research and consider their options to find the right home.
Real estate seasonal cycle
The real estate market also follows a seasonal cycle, with spring & summer being the busiest buying and selling season, and fall & winter with lower prices and longer selling times.
Spring & Summer are the best time to buy a house because there are more homes on the market, and prices are lower than other seasons.
Fall & Winter are the slowest time to buy a house because there are fewer homes available, and prices are higher than due to reduced competition. However, fall & winter have some advantages for buyers. First, home prices typically start to decrease. Second, the selling process takes longer, providing buyers with more time for research and decision-making.
Mortgage rates hold steady, but could rise again
According to Freddie Mac. Mortgage rates have remained stable in recent months, despite rising inflation. The 30-year fixed-rate mortgage rate was 6.96% on September 2023, the highest rate since December 2008. The 15-year fixed-rate mortgage rate is also at a record high, at 6.38%.
Experts predict that mortgage interest rates may remain stable in the near future, but they could rise again if inflation continues to increase.
Advice for buyers to find a good deal this year
The real estate market is cooling off after a long period of strong growth, creating opportunities for buyers to find good deals.
More negotiating power: With declining demand, sellers are having difficulty selling their properties. According to Zillow’s analysis, in July, 22% of home listings had price reductions, a slight increase from the previous month. Homes are also spending more time on the market before getting under contract. Additionally, the number of pending listings has slowed, decreasing by about 6.5% from June to July.
Longer time on the market: When homes stay on the market longer, they are more likely to reduce their prices to expedite sales.
The real estate market is changing, and buyers have more opportunities to find good deals. By carefully preparing and working with experienced real estate agents, you can find a home that meets your needs and budget.
