POST TAGSMortgage News
Blog posted On October 11, 2022
Temperatures are dropping, leaves are falling, and the housing market is cooling off. Normally a cooled market suggests it’s a less-than-ideal time to buy a home, but this year it might just be your window of opportunity.
Buyers have had a tough time this year. With interest rates climbing at a quick clip, many people have struggled to afford a new home. But the chill of October is bringing fresh hope for home buyers.
Home buying costs take a dip
If you buy a home this month, you’re likely to pay a lower premium, according to real estate data company Attom. The premium for October is around 3.3% more than the home's market value. In May, the month with the highest premium, buyers pay roughly 10.5% above the home’s market value.
Premiums on a $500,000 home, based on the month purchased (according to Attom):
October: $16, 500
Less buyer competition, lower home prices
Once the weather cools and school starts, many buyers hunker down until Spring. With decreased demand, it's likely that you'll see a decrease in home prices as well.
“Seasonality has always had an impact on home prices, which tend to weaken in the fall and winter months when there’s less buying activity,” says Rick Sharga, Attom’s executive vice president of market intelligence. “Savvy home buyers can take advantage of those lower prices and less competition from other buyers once the leaves start to turn.”
Beyond the seasonal benefits of buying this month, home prices are cooling at the fastest rate in history. Buyer incentives like discount points, closing cost incentives, and mortgage payment buydowns are becoming more common. Many buyers are getting hung up on the rate, which is understandable. But with so many builder and seller incentives floating around, there are many ways that you can lower your interest rate on a home. If you’re interested in exploring your options, let us know and we’d be happy to set up a free mortgage consultation.
Sources: CNBC, MarketWatch