Good for you if you’ve deliberately sat out the summer madness of the current housing market. If you’re serious about purchasing a home this fall, you may have just saved yourself some money.
Most people are aware that homes sales tend to drop during fall and winter, but did you know that home prices drop as well? They drop a nationwide average of 3 percent which is a reduction of more than $7,000 (based on the current nationwide median existing home price). Remember, all real estate is local, so your “mileage” may vary. For Colorado Springs in 2015, the median home price from June to October went from $250,000 to $234,900. That’s a 6% decrease in just 4 months. That trend is shaping up the same for 2016.
So, let’s take a look at a few more reasons why shopping for a home in the fall may be one of the best decisions you can make.
You’ll get a better deal now
RealtyTrac, a real estate data analytics firm, studied more than 30 million home sales dating back to 2000 and found that homebuyers get the best deal in October. In fact, the study finds that the average sales price in October, nationwide, is 2.6 percent lower than average market value. Coming in behind October, the best months to buy a home, according to this study, are December, January, February and July. And purchasing a home this fall in Colorado Springs may even save you more money … if 2015 is any indication.
The worst month to buy a home? April homebuyers, according to the RealtyTrac study, paid 1.2 percent more than estimated market value.
It’s a better time for first-time homebuyers
Move-up buyers – all those folks you were competing and losing against just a few months ago – are now in their new homes. In fact, it was recently reported that the market now consists of mainly first-time buyers. When you aren’t competing against someone who has more money than you (e.g. proceeds from their current home), you’re on a more level playing field. Another good reason for purchasing a home this fall rather than waiting for the madness to begin again next spring and summer.
This isn’t to say you won’t still need to act quickly when you find a home you want to purchase, because you will. But overall, your competition is in the same boat as you.
Sellers are motivated
Less competition among buyers make sellers nervous. They want out of the home, hopefully before the winter holidays, so they’re more motivated to negotiate. While you should still come in with your highest and best offer in a seller’s market, buyers may be able to get better terms and/or conditions.
The whole industry is less busy so you’ll get more and better attention
From home inspectors to lenders to title companies and even movers, business takes a bit of a breather in the fall, so your deal will get more attention. And more attention means more timely service. Less time to get the appraisal may mean less time it takes to close the deal when purchasing a home this fall.
Shopping conditions are more pleasant – and helpful
Unlike shopping for a home in winter, in autumn you can still catch a glimpse of the perennials and see how the leafy trees look. And, unlike summer home shopping, the weather will probably be more pleasant.
If you are considering purchasing a home this fall, shoot me a text or call. I’d love to help you on the journey to home ownership. There are also a ton of other resources on the blog and website to help you along.
About the author: The above post “Purchasing a Home this Fall … What You Need to Know” was written by Kevin Guerrero of Keller Williams Clients’ Choice Realty. To find out more about Kevin and Keller Williams check out the ABOUT US page.
You can also download a comprehensive Buyers Guide HERE.
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