Most people think they should wait until spring to get a good deal on a home. However, there are four reasons why fall and winter are actually the best seasons for home buyers.
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There are four main reasons why the fall and winter are the best times to buy a home rather than waiting for spring.
First of all, interest rates are low and money is cheap right now. Rates are hovering around 4%; if rates went up by 1%, the monthly payments for a $100,000 home would go up by $100. A 1% rate increase would mean that the payments for a $200,000 home would go up by $200 a month. To put that into perspective, you would be paying an extra $2,400 a year and an extra $72,000 over the life of a 30-year loan.
Secondly, when you buy in the fall or winter, you will face less competition. Fall means new inventory comes on the market and old inventory is repositioned. Typically, there are fewer buyers in the fall because they think they will get better deals in the spring. In reality, though, the opposite is true.
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Fall and winter are actually the best times to purchase a home.
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Sellers are also more serious in the fall. Most people who sell in the fall have to sell their houses, whereas some spring sellers might just be testing the market to see what they can get. Lowball offers and multiple offer situations typically aren’t an issue in the fall.
Finally, there are a lot of flexible loan programs available on the market for buyers right now. Some loan programs only require a 3% down payment; others go up to 20% down. If you qualify for a VA loan, you can purchase a new home with no money out of pocket.
If you start looking for a home in today’s market, you won’t be disappointed. If you have any questions about navigating the fall market or about real estate in general, give us a call or send us an email. We would be happy to help you!
