The best time to buy a home this year is just around the corner.
This is what a new study says report from Realtor.com, which says things appear to be looking up for budding homebuyers as fall approaches.
The week of September 29 through October 5 is an ideal time to buy, as mortgage rates are falling, sales prices are beginning to decline, and more homes are coming on the market.
During these seven days, buyers can also expect a discount of more than $14,000 compared to the summer peak on a median-priced home of $445,000.
“With all the challenges buyers face as the housing market continues its journey toward a healthy state, this week boasts the culmination of market factors that favor buying over any other week of the year,” said Realtor.com Chief Economist Danielle Hale.
The week of Sept. 29 through Oct. 5 is an ideal time to buy, according to Realtor.com, as mortgage rates are falling, sales prices are beginning to decline and more homes are coming on the market.
To determine the best week to buy, Realtor.com considered a variety of housing metrics, including list prices, inventory levels, new listings, days on the market, homebuyer demand, weekly housing data in 2024 and price reductions between 2018 and 2023.
By early October, home prices will have fallen from their summer peak and buyers can start to take advantage, said Hannah Jones, senior economic research analyst at Realtor.com.
While property prices continue to fall in the winter, available inventory is also beginning to decline, he noted.
This means that “late fall buyers can take advantage of lower prices and ample inventory before the market enters its winter slumber,” he said.
Along with falling prices, there will also be more homes to choose from after years of tight housing inventory, Realtor.com said.
Historical trends suggest that during the best week to buy, there will be 14 percent more properties for sale than the average week, or 37 percent more compared to the start of 2024.
“Homebuyers who purchase during the prime week should expect less competition from other buyers,” Hale said.
Early spring and summer bring in the most homebuyers, and cooler weather typically signals a seasonal slowdown.
When fall arrives, many people find a home, leaving more room for those who do their shopping in late September and early October.
On top of that, high mortgage rates that kept the summer market sluggish could fall ahead of the best week to buy, creating an even friendlier environment for would-be buyers, the research found.
Mortgage rates have been falling in recent weeks, reaching lows not seen in more than a year.
The average 30-year fixed mortgage rate fell to 6.35 percent, according to the latest data from Sept. 5.
“Even though rates have come down over the summer, home sales have been lackluster,” said Sam Khater, chief economist at Freddie Mac.
But the housing market is expected to start moving as mortgage rates continue their downward trend.
The Federal Reserve is expected to cut interest rates at its next meeting this month, and economists predict mortgage rates could also fall as a result.
Along with falling prices, there will soon be more homes to choose from after years of housing shortages, Realtor.com said.
The Federal Reserve is expected to cut interest rates at its next meeting this month, and economists predict mortgage rates could also fall as a result.
“This week marks the culmination of market factors that are more favorable to buying than any other week of the year,” said Realtor.com Chief Economist Danielle Hale.
While mortgage lending is not directly influenced by central bank benchmark borrowing costs, the Federal Reserve rate and mortgage rates tend to move in the same direction.
“Potentially lower mortgage rates could have a big impact on the cost of buying a home this fall,” Hale said.
‘Recent improvements in mortgage rates could be a light at the end of the tunnel for homebuyers.’
Realtor.com predicts mortgage rates will hit 6.3 percent by the end of the year.
But some experts believe rates need to fall further to revive the frozen housing market.
The “Oracle of Wall Street,” Meredith Whitney, has said rates must fall below 6 percent.
Once rates are within the 5 percent range, buyers tend to feel encouraged to take the plunge, he said.
Whitney, who earned his nickname after predicting the global financial crisis, predicted that home prices would also need to fall by a tenth for there to be a material difference in affordability.
