While rising mortgage rates and limited inventory make for a challenging real estate environment, today's homebuyers are determined to navigate the obstacles in order to fulfill their dream of homeownership, nonetheless. And according to a recent report from Realtor.com, October may be the best time to make that dream come true.
In its fifth annual Best Time to Buy Report, Realtor.com identifies key factors to consider when buying a home, apart from mortgage rates. According to the report, inventory, prices and competition from other buyers are in peak alignment across the nation during the week of October 1, providing homebuyers with a unique window of opportunity. According to Realtor.com, with more home listings, less competition and lower prices expected, this early-fall time frame could present a unique boon to buyers.
Since 2018, Realtor.com® has analyzed home prices, inventory, listing views and time on market, indicators that tend to follow regular seasonal patterns, to determine the best time to buy. Here's how these factors break down during this unique window:
Reduced prices. Historically, an average of 5.5% of homes have price reductions during the "Best Time to Buy" period, which means roughly 40,000 homes across the U.S. could see price reductions, based on inventory estimates. During this week, prices typically dip 3.3%, compared to the typical season high, translating to $15,000 in savings. And in several of the largest housing markets around the country, home prices during this week can dip more than 10% below their peak price earlier in the year, potentially saving buyers tens of thousands of dollars.
Increased listings. This year, inventory will likely be lower than in years past as hesitant sellers shy away from the market. However, seasonal inventory trends are expected to result in 11.7% more active listings for the week of October 1 compared to any other average week during the year, and 17.2% more than the start of the year.
Less competition from other buyers. Homebuyers shopping during this timeframe can expect less competition from other buyers. This year, Realtor.com notes a return to some pre-pandemic home-shopping trends with the most views per listing in the spring, and prospective buyers continuing to explore the housing market during the summer months. That could equate to fewer buyers to compete with this fall. While there may still be more competition than pre-pandemic, buyers can expect demand to be 18.7% lower than peak buying periods in 2023, and 13.5% lower than the average week, according to the report.
A more manageable timeline. While homes are still spending less time on the market than prior to the pandemic, the breakneck pace of the housing market has slowed. During the "best time to buy," buyers can spend more time considering their options rather than making quick decisions, and sellers may become more flexible as their listings linger. Historically slowing by 29% compared to the year's peak pace – homes were on the market for an average of 43 days in June 2023 – buyers can expect more than one week extra to deliberate in early October, says Realtor.com
More fresh listings. Despite the count of new listings having fallen this year as homeowners hesitate to sell amidst financial concerns tied to record-high mortgage rates, new-listing declines have leveled off. Historically, this timeframe has seen the addition of 18.9% more homes than at the start of the year, and early October is set to offer the highest influx of fresh listings compared to the remainder of the year.
While the above statistics and trends could spell success for homebuyers in the coming weeks, remember that all real estate is local. Consult a local real estate professional to determine how the above trends could play out in your particular home-search area.
