Three reasons to buy a home right now
Less competition, serious sellers and tired-out vendors.
It’s fall across the United States right now. The trees are shedding their colorful leaves, the weather is cooling down in preparation for a Christmas winter wonderland and the real estate market is primed for sales.
The Federal Home Loan Mortgage Corporation, known as Freddie Mac, says fall is one of the best times of the year for potential homebuyers to snag a deal on their dream house, offering three simple but accurate reasons.
Fewer competitors in the marketplace
Many aspiring homeowners and a raft of eager sellers opt to trade during the warmer months of spring and summer. This means competition among buyers can be intense, potentially driving up prices. However, during the months of September through November, there are typically fewer people investing in the market.
Additionally, bidding wars are less common and there’s reduced pressure on buyers to sign a mortgage. Freddie Mac adds that “because the market is quieter, sellers will take your offer more seriously”.
Serious sellers are more abundant in the fall
Often, if a home comes on the market during the fall months, it’s usually because of a life event that triggered the sale, such as a job transfer, a new house or a death in the family, according to Freddie Mac.
During this time, the power of negotiation is typically in the buyer’s hands; whether it is the price, the timing of the sale or necessary home updates, given that the seller is needing to move, rather than wanting to move.
Sellers who are listing properties during the fall are likely to be serious and ready to negotiate a deal.
Many sellers are worn-out from the process
Sellers who previously listed their home during the earlier months of the year, and weren’t able to secure a sale, were likely hit with aggressive price points and attempted to sell in an over-saturated marketplace.
These efforts often lead to sellers becoming exhausted during the fall months. Given the slower pace of sales, buyer’s can gain leverage and often enjoy lowered sale prices during these cooler, quieter months of the year.
There’s more good news. The CFPB revealed the national rate of seriously delinquent mortgages has fallen to its lowest level since the global financial crisis of 2008, with the fewest occurring in Colorado and Alaska.
If you’re a first-time homebuyer and you close before the end of the year, you can take advantage of tax breaks.
However, the latest research suggests a record-low level of housing supply and increasing price growth across the United States is restricting the number of first-home buyers from entering the real estate market.
The buying process doesn’t end once you find your dream home. Compare mortgages to secure the right loan.