Your window to buy a home is closing

By
Real Estate Broker/Owner with Watters International Realty #0567369

 

Dear friends and clients,

Just like the weather, the real estate market is finally starting to cool off slightly. In this fall market, we expect to see less competition among buyers, more listings, and slightly more days on market.

Some buyers may see a market forecast like that and think they should wait. However, waiting to purchase a house may not be the wisest decision. Conversely, buyers should be looking to make their purchases as soon as they possibly can.

While spring and summer are the seasons that typically see the most buyer activity and competition, Realtor.com found that the fall is when buyers find the best deals.

Their research has also uncovered that buyers are facing 18% less competition now than they did at the peak of the summer season and 6% less competition than another standard week. They also discovered that listings increased 31% and that houses stayed on the market for an extra seven days during this week.

Maybe the most exciting part is that many sellers have been known to list at a lower price during this optimal week. 7% of active homes also typically lower their prices at this time. With 705,000 listings on the market in October, that means that about 50,000 houses will see a price reduction. Buyers could potentially save around $10,000 on a mid-range home if they buy during the optimal week, according to Realtor.com.

That all sounds great, but you might be wondering why you shouldn’t wait longer since the market is cooling. The reality is that waiting even longer will end up costing you more.

The driving force behind this is rising mortgage interest rates. They are expected to reach 3.5% by the end of the year. Choosing to wait means that you would need home prices to drop by 10% to compensate for a 1% rise in interest rates. We didn’t even see house prices drop by 10% during the Great Recession, so don’t expect it to happen now.

Two main factors could cause interest rates to rise soon. The first one is pending inflation and how mortgage rates will be adjusted to combat it. The second factor is the Federal Reserve. They typically buy mortgage bonds to stabilize the housing market and boost the economy, but if they decide to reduce their purchases, interest rates will rise, and buyers will end up paying more.

Our market may be cooling, but now is still a great time to buy. It’s time to get off the fence and take advantage of the increased inventory and low rates because they won’t stick around forever. If you’re interested, click here to see all current Austin homes for sale right now.

If you’re considering buying a house or have any questions about real estate, feel free to reach out to us at 512-829-8000 or reply to this email. We look forward to hearing from you. This fall is the perfect time to buy a house and take advantage of the current market.

Have a great day,

Chris Watters

 

 

          

             Looking to buy a home?                          Looking to sell a home?

 

Comments (0)