Agents, Here’s Some Motivation for Uncertain Buyers

A bright spot in a tough market? The best time to buy in 2024 — and save upwards of $14,000 — is just weeks away, says Realtor.com.

Key Points:

• The last week in September offers the best combination of benefits for buyers who are ready to take the plunge this fall.
• Buyers will have more homes to choose from — at lower prices compared to summer highs — and less competition.
• Mortgage rates could also dip, lowering overall costs, but if buyers wait too long, they’ll see new listings dry up.

There are plenty of factors keeping buyers out of the market: Homes have become increasingly unaffordable (and prices are continuing to rise). Down payments hit a new record high this summer. And while mortgage rates have fallen over the past few weeks, borrowing costs continue to account for a big chunk of change each month.

And consumers have noticed — just 17% think it’s currently a good time to buy a home. 

But it’s not all gloom and doom in the world of real estate. People still want (or need) to buy, and for those in the market, things are looking a little more promising this fall. 

And they should get ready to jump — the best week to buy a home in 2024 is right around the corner, according to new data from Realtor.com.

Mark Your Calendars

Agents and buyers should start getting their offers ready. The prime week for a home purchase this year is September 29 – October 5, Realtor.com researchers say.

That week is expected to be the sweet spot for buyers based on an analysis of listing prices, overall inventory as well as new listings, time on market, buyer demand and price drops.

What Advantages Will Buyers Have?

First, they’ll have more homes to choose from. Inventory has been steadily increasing all year, and Realtor.com predicts supply will be 37% higher by late September compared to the beginning of the year. And those homes are staying on the market an average of two weeks longer, giving buyers more time to tour homes and make a decision — with less competition. 

But the biggest draw is that homes should be cheaper that week, at least compared to summer peaks, the report says. Buyers can expect to save more than $14,000, on average, if they manage to make a deal in early October.

Mortgage Rates May Drop

Borrowing costs could also ease slightly for buyers looking to make a purchase in the coming weeks. The Federal Reserve is expected to start cutting rates this month, and depending on the size of those cuts, mortgage rates may fall further. 

Currently, analysts put the odds at about 50/50 that the Fed will cut rates by either 25 basis points — which may have a limited effect of mortgage rates — or 50 basis points, which could have a more noticeable impact, according to Redfin economist Chen Zhao. 

Either way, buyers who act soon are likely to come out ahead, said Realtor.com Chief Economist Danielle Hale. 

“Unlike the past few years, we are seeing ample for-sale inventory which could soak up any late-season demand in many markets, making the fall a great time to buy even if falling mortgage rates amp up more demand than is typical,” Hale said, adding that buyers “are going to find some of the best market dynamics in years during the first week in October.”

What If Buyers Aren’t Ready?

There’s no need to panic, said Hannah Jones, Realtor.com’s senior economic research analyst: “If the Best Week feels like it is approaching too quickly, buyers may be happy to hear that the following two weeks are the second- and third-best weeks to buy,” Jones noted. 

But they shouldn’t wait too long. Listing activity will begin its seasonal decline as the autumn days get shorter and cooler. 

“Buyers trying to close this fall should prepare now,” Jones advised.

Source: Real Estate News

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