Mark Your Calendars: The Best Time to Buy a House in 2024 is Just Around the Corner

Autumn’s Cozy Weather and Falling Leaves Make It a Great Time to Buy a Home

Autumn typically brings cooler weather and falling leaves. It’s also a great time of year if you’re in the market for a new home.

Best Time to Buy a Home This Fall

According to a report recently released by Realtor.com, the best time to buy a home this fall is in early October. Specifically, the week of Sept. 29 to Oct. 5 should offer the best combination of easing mortgage rates, rising inventory and decreased competition in most major markets as the spring and summer peak buying seasons fade away.

Housing Metrics Analysis

The listing site analyzed several housing metrics, including listing price, available inventory, new listings, percentage of price reductions, time on the market and homebuyer demand to pinpoint the best week to buy a home in 2024.

Mortgage Rates on the Decline

In addition to the usual opportunities presented to buyers during the off-peak season, there is an additional benefit this year. Mortgage rates, which averaged above 7% at one point, have been steadily declining for the past four months. They were averaging 6.20% as of Thursday, according to Freddie Mac, a government-sponsored enterprise that issues a weekly national average mortgage rate considered the industry’s benchmark.

Lower Mortgage Rates and Improved Affordability

Lower rates have led to an improvement in affordability, at least in terms of borrowing costs. For example, a homebuyer taking out a $300,000 mortgage at 7.22% would have a monthly payment of approximately $2,040. At 6.20%, the monthly payment would decrease to about $1,837, representing a savings of over $200 per month.

Why Fall is the Best Time to Buy a Home

The most active buying seasons are the spring and summer months because most prospective buyers want to take advantage of the end of the school year to find a home (and move before the start of the new one).

Less Competition and Lower Home Prices

Fall is when sales activity typically starts to slow. There are fewer buyers and, therefore, less competition for available homes. Historically, buyer demand is 29.5% lower during the first week of October than during the peak season and 14% lower than the average week.

Slower Pace of Sales and More Inventory

Homes typically spend nearly 35% more days on the market in early October compared to the fastest pace during the peak seasons, according to Realtor.com. In June this year, for instance, homes sold in an average of 44 days. Buyers during the first week of October can expect homes to stay on the market for about two weeks longer than that.

Lower Home Prices and More Price Cuts

Home prices also generally tick lower in the fall — again, because of decreased buyer demand. Nationally, prices are about 3% lower during the first week of October compared to the peak spring and summer buying seasons. Realtor.com estimates buyers could save around $14,000 compared to summer’s peak median home price of $445,000.

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