If you’re in the market for a new home, the best time to buy may be in the fall, according to a report from Realtor.com. The report suggests that the first week of October is the most favorable time to buy, as there are typically more active listings compared to the start of the year. During this time, demand is expected to be lower, meaning homes may stay on the market longer, giving buyers more time to make a decision.
Additionally, closing prices during the fall are projected to be over $15,000 less than the peak prices seen during the summer months. This can provide some relief for buyers in the face of higher rates and other stressful aspects of the home-buying process.
“Our analysis shows that buying in the fall does give buyers some more predictable advantages that could potentially ease the pain of higher rates and other stressful aspects of the home-buying process, including making fast decisions and bidding wars,” said Realtor.com economist Danielle Hale.
It’s worth noting that this finding is consistent with the previous year, where the week prior to October 1 was identified as the ideal time to buy.
Apartment Boom Expected as Housing Market Relaxes
Despite concerns about a housing crunch, there has actually been a significant increase in apartment construction in recent years. According to data from Rentcafe, 1.2 million new apartments have been added to the market in the past three years, the highest number since the 1970s. And the trend is set to continue, with another 1.1 million units forecasted through 2035.
By the end of 2023, a record-breaking 460,860 rental units are expected to have been completed. However, the pace of construction is expected to slow in the coming years due to the tightening of bank-lending standards and rising costs of construction materials, labor, and land.
New York City has the largest cluster of new rental units, with at least 33,000 units expected to be completed by December 2023. Interestingly, a third of these units will be in Brooklyn. The second largest market is the Dallas metro area, followed by Austin and the greater Miami area.
Overall, the increase in apartment construction provides more options for renters and helps to alleviate some of the pressure on the housing market.
Sources: Realtor.com, Rentcafe
– Active listings: The number of properties that are currently available for sale.
– Demand: The desire and ability of buyers to purchase a property.
– Closing prices: The final sale price of a property, including all costs and fees.
– Bank-lending standards: The criteria that banks use to evaluate a borrower’s eligibility for a loan.
– Construction materials: The raw materials used in the construction and renovation of buildings, such as lumber, concrete, and steel.
– Greater Miami area: The larger region surrounding Miami that includes neighboring cities and towns.
– Apartment construction: The process of building new apartment buildings or complexes.
– Realtor.com: “Best Time to Buy” report