Is Now the Best Time to Buy a Home? Experts Weigh In
Published On: September 30th, 2024
As we enter fall, real estate experts, including those at Realtor.com, are signaling that this may be the best time of the year to buy a home. A combination of lower mortgage rates, increased housing inventory, and reduced buyer competition makes this period especially favorable. But is now truly the best time to buy, and what does this mean for potential buyers and the broader economy?
- Best time to buy: September 29 – October 5, 2024, according to Realtor.com
- Potential savings: Up to $14,000 on average compared to summer 2024 prices
- Increased listings: 37% more homes on the market compared to the start of 2024
- Lower mortgage rates: Average 30-year fixed mortgage rates are around 5.65%, according to Zillow, down more than 1 percentage point since July
This fall offers a unique combination of buyer-friendly factors. First, more homes are available, with a 37% increase in listings compared to earlier this year. This gives buyers a wider range of choices, improving the chances of finding the right home at a better price. At the same time, mortgage rates have dropped to around 5.65% for a 30-year fixed-rate loan, making home financing more affordable than it was during the peak summer buying season when rates were closer to 7.08%.
In addition to these market dynamics, demand is tapering off due to seasonal factors. Many families prefer to complete their home purchases before the school year starts, leading to a quieter market in late September and early October. This combination of higher inventory and lower competition means that buyers can negotiate better deals.
Real estate professionals, including Kirtana Reddy, a realtor from Austin, emphasize that the higher inventory and reduced demand create a “buyer’s market.” This allows for more flexibility in negotiations and a chance to avoid peak pricing seen earlier in the year. Realtor.com further highlights that buying during this period could lead to significant savings of around $14,000 on a median-priced home.
While some are concerned about ongoing economic uncertainty, including fluctuating interest rates and inflation, the recent rate cuts by the Federal Reserve have further improved conditions for homebuyers. Although these cuts don’t directly affect mortgage rates, they can influence lenders to offer lower rates, which, combined with falling home prices, strengthens buyers’ purchasing power.
What this means for buyers and the economy
For prospective homebuyers, this time presents a unique opportunity to enter the housing market without the intense competition that characterized the spring and summer months. Lower interest rates and higher inventory allow buyers to get better deals and more choices in their home search. The slight drop in mortgage rates, which may continue as the Fed adjusts monetary policy, provides additional financial relief.
However, this trend’s impact extends beyond individual buyers. Increased homebuying activity boosts the real estate sector and related industries, such as home improvement and construction. With more homes on the market and potential buyers stepping back in, this period could help stabilize the housing market, which has been volatile due to high interest rates and limited inventory over the past two years.
If you’re considering purchasing a home, the time may be now, as it seems to offer the best conditions seen in recent years. Lower mortgage rates, increased home listings, and less competition create an optimal environment for buyers. However, while the data supports a buyer-friendly market, it’s essential to assess your financial readiness and long-term plans. Work with a real estate professional to navigate the local market and take full advantage of the current conditions.