Dear Olivia,
I had hoped to be ready to buy a new home this summer, but it just didn’t happen. Did I miss the boat, or is fall a good time to buy a home?
Sincerely,
Ready to Buy
The real estate market follows a pretty predictable trend: things die down in the winter, as most people have no interest in moving in the snow and cold. Then, when spring rolls around, buyers and sellers come out in droves. As summer takes hold, things usually continue to be busy with plenty of inventory and plenty of buyers, too.
But fall is the wildcard…and it could be a great time for you to find the home of your dreams. Let’s break down why!
You’ll Likely Have Less Competition
With fewer people interested in buying a home as the weather cools down, you’ll have less competition for the homes on the market than you would in the spring and summer. With less threat of a bidding war or the home you like going under contract before you can make an offer, fall could be the time you get the house you want!
Of course, there are usually fewer homes on the market in the fall than there are in spring and summer, so while there’s less competition, there’s also less choice. Just keep that in mind as you continue your home search, and be flexible with your “must-haves,” as doing so will help your Realtor expand the search to find potential homes for you.
You Might Have More Negotiating Power
As fall continues and we get into October and November, you might find yourself in a better negotiating position when you find a home.
As I mentioned earlier, most people don’t want to be wrapped up in selling their home when it’s cold and snowy. And with the holiday season rapidly approaching, sellers might be more willing to accept a lower offer if it means they can get their home sold faster.
Mortgage Rates Seem to Be Less Volatile
After enjoying historically low mortgage interest rates, homebuyers have been hit with increasing rates for the last couple of years. However, while rates continue to rise, they at least seem to be less volatile than they were earlier this year.
According to Nerdwallet, the average mortgage interest rate in August was 7.18 percent. As of this writing, the average rate is slightly lower at 6.89 percent, according to Business Insider. This downward trend is actually expected to continue, with various organizations, including the National Association of Realtors, predicting that mortgage interest rates will fall for the next year or so, if not longer.
And since the Federal Reserve recently voted to keep interest rates where they are for now, you might see rates drop more rapidly, at least in the interim. Long story short, from a financing point of view, this fall could be the best time to buy this year!
As always, rely on your Realtor’s expertise to help guide you through the process. And if you don’t already have a Realtor, the Wind River Realty team is ready, willing, and able to help you find a home this fall! Call us at 307-856-3999 with any questions.
~Olivia