Regardless of other conditions which change from year to year I have long felt late fall is the best time of the year for buyers.
- Prices are starting to soften seasonally and sellers are often more willing to negotiate as they want to sell before winter arrives
- Supply is waning, but some sellers are scurrying to list before the holidays and you still have more choices than in the dead of winter
- There aren’t as many buyers who want to move in December/January so competition is less and you have a better chance of not losing out in multiple offers and not paying more than list price
Prices are usually best in winter so that is also a good time to buy, but that is also when the supply of homes for sale is lowest so it may be harder to find a home you want. This year the impact of buying now rather than in the traditional spring market could be even greater as interest rates rise along with home prices.
Twin Cities home prices appreciated 6.1% year-over-year according to last month’s market data. Let’s say that slows to 5.1% over the next twelve months. The chart below shows the impact an increase in price and interest rate would have on the mortgage payment of a home selling for approximately $250,000 today.
Bottom line is, if you are planning to buy a home doing it sooner rather than later could save you thousands of dollars over the lifetime of your loan.
Contact me to get together and chat over coffee or a cup of tea about whether buying makes sense for you right now.