As mortgage rates peaked over 7.25% last month, the highest rates seen in 22 years, Americans who are determined to make a home purchase this year are navigating difficult seas.
According to Realtor.com [1], they predict that approximately 4.2 million homes will change hands this year according to its Best Time To Buy [2] report which identifies key factors people use when considering buying a home, mortgage rates withstanding.
Realtor.com has predicted that the homebuying stars will dramatically align during the week of Oct. 1, meaning those in the market should view this week as a window of opportunity to make the most of their purchasing power.
Early Fall offers buyers the most favorable moment to buy compared to the remainder of the year as that week typically has more listings, less competition, and lower prices.
Realtor.com predicts the week will offer:
- Up to 17% more active listings than at the start of the year.
- Savings of more than $15,000 relative to the summer's peak price of $445,000
- More time to decide as homes are expected to stay on the market for one week longer than during this year's peak
- Less competition with demand expected to be 18.7% lower than peak buying periods
"Mortgage rates have been more than 6% since September 2022 and could continue this trend for another year. Even as prices fell this summer, the monthly payment to finance a median-priced home was still more than 20% higher than last year," said Danielle Hale [3], Chief Economist for Realtor.com. "Mortgage rates continue to be a big wild card for Americans hoping to buy a home. 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."
Hale added, "For buyers trying to close this fall, saving a search on Realtor.com can help them stay up to date on homes in their price range without the work of having to refresh or recreate their search."