When is a good time to buy a home?
As students head back to school, families start to settle into their routines. For many of us, home buying activities are not usually part of the family routine. Plans to buy a home are often mistakenly put on the back burner until the spring. So why should you start your search for a new home now?
Deciding to buy a home is one of the most significant financial decisions we all make. While location is is usually the most important factor, timing may also have a big impact on how much you pay for a home. According to home buying research, the best month for buyers is October. This means that if you have been considering a home purchase, now is the time to start looking. The best day of the week is Monday. And the single best day on the calendar is October 8th.
RealtyTrac reviewed over 32 million home and condo sales over the past 15 years, and they found that homes purchased in October came at a 2.6% discount to the current fair market value. Though based on the data, not many people were taking advantage of the discount, as only 2.7 million, or just 8.4%, of house closures occurred in October.
The discounts are most likely a function of there being fewer buyers, meaning sellers are more willing to settle on lower prices. These are significant numbers considering the price of a new home.
Sellers are often and mistakenly told to take their homes off the market until spring, On the flip side, real estate agents tell buyers that this can be a very opportune time for them because sellers, who keep their homes on the market through the holidays, are often very motivated to sell. There are also typically fewer buyers in the marketplace, so there is less competition for homes. Following October as best months to buy were February, July, December and January — all fall or winter months except for July, which was a surprise given that conventional wisdom would suggest that is a good time to sell but not necessarily to buy at a bargain price,” said the report.
The worst month to buy a house was April, when purchases paid 1.2% more than the market value. It was also the only month that did not register some sort of discount.
Additionally, RealtyTrac broke down the days of the week. Monday was the best day to purchase a house, with closings on that day averaging a discount of 2.3%. Friday was the second-best with a 2% discount, and Tuesday was the worst with only a 1% discount.
So while the findings are exclusive of each other, closing on a Monday in October seems to be a pretty good bet.
Looking at the calendar, RealtyTrac found October 8 as the single best day to close, with an average discount of 10.8%. This was followed by November 26 (10.1% discount), December 31(9.7% discount), October 22 (9.6% discount), and October 15 (9.1% discount).
The worst day of the year to purchase was January 19, with a 9.6% increase over market value. Home buyers also paid premiums over 9% on February 16 and April 20, both at 9.5%.
The most important first step in this process is to set up a meeting with your mortgage professional, negotiate a good pre-approval letter, then work with your real estate professional to find your new home. Now is the time! Picture yourself in your new home, call or text today to begin your new home search!
Jerry Henberger, Broker and Vice President, REMAX Premier Realty – Direct line: (949)874-7126
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