Now that it’s been established that 2023 is a good time to buy a home, many aspiring homeowners are curious about the best time of the year to purchase a real estate property. To determine this, there are many important factors to consider. These include the number of obtainable listings, pricing of properties, and the availability of brokers and realtors.
While there is an ongoing debate about timing in the real estate community, many experts agree that the fall season (October in particular) is the best time to buy a home in the US.
Keep reading this article to find out.
Why October Is the Best Time to Buy a Home
There are several different reasons that the October timeframe is ideal for purchasing a real estate property.
Let’s take a look:
The Market Cools Down
The real estate market is at its hottest during the summer. Children have a break from school, parents take time off from work, and the weather is nicer in many areas. All of these combined factors make June through August the most convenient time to view listings, attend open houses, apply for a mortgage, and eventually move to a new home.
However, the most convenient time does not necessarily translate into the best time to buy a home. Since so many people are buying and selling in summer, the market is extra busy. This means that you will need to put more effort and money into purchasing a real estate property.
As school begins and the weather cools down, so does the housing market. By October, the market has typically reached an ideal balanced situation before things slow down too much around the winter holidays.
In other words, the real estate market is just the right “temperature” for both new and experienced homebuyers.
Real Estate Inventory Is High
One result of the cooldown in the real estate market during the fall months is the increase in active listings for sale.
The following graph from Realtor.com shows that historically, October has witnessed one of the highest numbers of active residential real estate listings over the past five years. Both the summer and winter months have had significantly fewer houses for sale.
This abundant inventory of properties for sale offers two major advantages for buyers. First, there are more houses to choose from. This means it’s easier for them to find the best home for their particular needs and preferences. Second, the rise in supply pushes prices down. Therefore, you can buy the same property for a few thousand dollars less than a month or so ago.
Listings Prices Are Low
Another outcome of the market cooling down in October (and the growth in inventory) is the seasonal decline in property prices.
The following graph demonstrates that the prices of active listings have been considerably lower in October than in the hot summer months.
While October home values are not quite as affordable as in the winter, fall proves to be the optimal time to strike the right balance between inventory and prices. By waiting for prices to go down after October, homeowners risk having too few available properties to choose from.
Real Estate Agents Are Available
The final reason that October is the best time to buy a home is the fact that agents and brokers have more availability than in the hot summer real estate market.
According to NAR, May through August are the busiest months for homeselling activities and account for 40% of all annual sales (with June marking the absolute peak). Meanwhile, November through February is considered the slow season (with January being the absolutely slowest month).
Even if you find a favorable home that fits your budget in the summer months, you will need to share your realtor’s attention with other homebuyers. Since their availability is limited, they are less likely to put in the necessary time and effort to help you get the best possible deal on your dream home.
And while real estate business may be slow in the winter, this is not an ideal time to become a homeowner. The holiday season leaves many busy and distracted, which often delays real estate transactions.
This leaves October somewhere in the middle. Agents are not completely overworked or distracted by the holidays yet, and there are still an adequate amount of homes for sale.
How to Prepare for Buying a Home in 2023
Now that you know why the fall season is the best time to buy a home, it’s time to start preparing for purchasing a real estate property.
Here are some steps you can take now to ensure you are ready for fall 2023:
While you don’t need a degree in real estate to buy a home, having some basic knowledge of the local market and home buying processes is definitely valuable. Start by keeping track of current property types and sizes, home values, and available listings in your area.
In addition, learning from real estate blogs and podcasts now will help you feel more confident when it’s time to move forward.
Get Pre-Approved for a Mortgage
Although the real estate market is generally cooling down in 2023, it’s always a good idea to be pre-approved. This makes you look like a more reliable buyer in the eyes of sellers and they are more likely to accept your offer over those who aren’t pre-approved.
Research financing options in your local market, talk to a few different lenders, and understand what documents you need to prepare to apply for a mortgage.
Connect with an Agent
If you’re thinking of buying a home in the fall of 2023, it’s not too early to start looking for a top real estate agent in the area. One of the best ways to do this is to ask for recommendations from family and friends who have recently bought or sold a property. You should also check online reviews to ensure that your chosen agent has a solid reputation with predominantly positive experiences.
After you have found someone who seems like a good match, you can contact them to ensure that they are the best option for your needs.
Get Access to Homebuyer Tools
Real estate technology is an indispensable resource for every homebuyer. There are plenty of online tools that can guide you throughout the process of buying a home.
Landslo is an especially valuable option for aspiring homeowners who need some extra support throughout the journey. Landslo’s digital assistant can send you customized local market trends, home buying tips, and tailored listings that match your specific criteria. And when the time comes, Landslo will connect you with the best possible agent for your needs.
Chat with Landslo to learn how he can help you buy a home in 2023.
Whether you’re planning to buy a home in the fall or another time of year, it’s crucial to make the necessary preparations. After all, the real “right time” is when you are fully equipped with all of the tools and knowledge you need to make this big purchase.