This Is the Best Week to Buy a House — Do Not Miss Your Chance
If you’ve been sitting on the sidelines or casually browsing open houses, it may be time to officially put yourself in the home-buying game. That’s because the best time to buy a home in 2024 will be the week of September 29 to October 5, according to a new report from Realtor.com.
It’s the best time to buy a home for a number of reasons. The first reason — and possibly most important — is that buyers could save more than $14,000 on their home purchases when compared to summer’s peak prices, and, depending on the area, you could have your pick of up to 37% more active listings than at the start of the year, according to Realtor.com.
Plus, mortgage rates are also dropping: The rates on 30-year, fixed-rate mortgages averaged 6.09% on September 19, according to the latest report from Freddie Mac, which is down from 6.20% from the previous week. (In fall of 2023, mortgage rates hit 7.79%, which is the highest they’ve been since 2000).
“This decline in rates combined with softening prices in some markets has boosted the purchasing power of homebuyers,” says Danielle Hale, chief economist at Realtor.com.
On a national level, buyers of the median-priced home could see payments down $300 to $340 from recent mortgage rate peaks in May 2024 and October 2023, Hale says. If home shoppers had already budgeted to afford those higher monthly costs, they now have an extra $70,000 in home-buying power as a result of the lower mortgage rates, she says.
Another thing in buyers’ favor? As we move into fall, fewer buyers are in the market for a home, which lessens competition.
This seasonal slowdown is partly driven by school schedules and weather patterns, Hale says. Home searches pick up in spring and peak in summer, as families hope to move while kids are out of class and want to be settled into their homes before the back-to-school rush. (Meanwhile, the spring, particularly early June, has traditionally been the best time to sell a house because demand is high).
“For home shoppers who are flexible in their timing, especially those like first-time homebuyers who don’t have to sell a home, the fall is a much more favorable season,” Hale says.
This year’s “best time to buy” report is on trend with previous years. Early October is when shoppers get the biggest benefits of the season without having to contend with the more limited inventory that can arise later in the year, closer to holiday season, Hale says.
New York City real estate agent Steven Gottlieb of Coldwell Banker Warburg says there are perks of buying in the fall — especially this year, as a good number of would-be buyers have been waiting for interest rates to be cut.
With recent rate drops, it’s likely many buyers will jump into the market with renewed interest, he says, and many of those buyers will list the homes they are leaving to buy a new house, shaking up the market and inventory. Even still, the competition is less stiff than in spring.
One tip to make the most of this week? Look at how long homes have been listed. Many sellers who listed homes in the spring or summer may reduce their asking prices in the fall if they haven’t sold yet, says Tammie Carter, real estate advisor with Engel & Völkers Atlanta.
“Sellers who have kept their homes listed this late are often more serious about selling and may be more motivated to close a deal before the holiday season, leading to potential discounts,” she says.