Home prices were so high during the spring and summer seasons that buyers decided to hold off until prices cooled. Now, it looks like the time for them to jump back into the hunt is here.
As home prices begin to cool off, the housing industry could be looking at a buying frenzy as folks look to capitalize on some of the best homebuying deals of the year. Realtor.com reports that the best time to buy a home is between Sept. 12 and Oct. 17, as the majority of markets across the country will reportedly hit their homebuying sweet spot.
The site reports that more homes are likely to hit the market with lower prices and less buyer competition compared to the average week of the year. While this week features prime buying conditions for New York, Los Angeles, Boston, Denver, Detroit, Minneapolis, and Portland, Realtor.com says the majority of markets won't hit their prime until the week of Oct. 3.
Perhaps one of the biggest barriers for buyers this year has been home prices. However, relief could be on the way as Realtor.com estimates prices could dip 2.6% compared to a typical season-high during the week of Oct. 3. On a median listing price of $385,000, buyers could save approximately $10,000. And in the largest housing markets, prices could dip more than 10% from their peak, according to the report.
“Home prices peaked in the summer, and new listings continue to come on the market helping slow the pace of sales -- which is good news for homebuyers,” said Danielle Hale, chief economist, Realtor.com. “As families across the country focus on getting back into school routines, there are fewer buyers in the market, creating a great opportunity especially for first-time homebuyers to make a purchase with somewhat less competition.”
Additionally, Realtor.com believes the extreme inventory shortages earlier this year have been slightly relieved by 100,000 additional homes that hit the market in 15 of the last 17 weeks.
“On average, the best time to buy in each market will mean 166,000 (31%) more active listings than the average week and have an additional 100,000 new listings to choose from nationwide. That is 46% more than the start of the year,” according to the report.
The company also expects to see 7.2% more active listings in the week of Oct. 3 than the average week and 17.6% more than the start of a typical year. Also, as more families refocus their efforts on getting their kids back into school, Realtor.com expects the market will see 18% less competition during the period of Sept. 12 to Oct. 17.
As buying activity picks up, lenders could be looking at a spike in business with more buyers looking to take advantage of the earlier Q4 deals.
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