The Best Month to Buy Your Next Home
Want a discount on your next home purchase? Now is the time to get pre-approved and start your home search if you want the best deal. According to recently released data, along with real estate agents consensus, the best month to buy is right around the corner.
RealtyTrac analyzed more than 32 million sales of single family homes and condos since 2000, and we found that the month where buyers have gotten the best deal on average is October.
Of the 2.7 million sales closed in October over the last 15 years, the average sales price was 2.6 percent below the average estimated full market value at the time of sale.
The analysis, which considered condos and single-family home sales across the US, found that on average October ranks highest in terms of getting the lowest-priced deal.
February, July, December and January complete the top five but there are regional variations.
Not surprisingly, savvy real estate investors have known for years the “off-season” is the time to make an investment. They use the “off” months to snap up foreclosures and other REO properties.
If you’re looking for a home for investment potential rather than a place to live forever, the off-season is the smart time to buy.
Home Shopping During “High-Season”
As buyers flood the market after a winter of hibernation, neighborhood lawns will begin to sprout the familiar “for sale” signs. But just because spring is the most popular time to buy a home doesn’t mean it’s the right time.
In fact, it’s actually the worst time. According to RealtyTrac data the worst month to complete a real estate purchase is April.
Buyers over the last 15 years have purchased at an average premium of 1.2 percent above estimated market value at the time of sale.
If you’re shopping during the high season you’ll likely find more inventory, but also more buyer competition. More competition means many homes will be in a competitive bidding situation and you end up paying more.
Home sellers are also less inclined to negotiate or do minor repairs when their home is getting heavy foot traffic and multiple purchase offers.
Sellers take note, the worst month for buyers is obviously the best month for you.
Local and Regional Variations
Although many real estate trends are nationally applicable, available inventory, and thusly the right time to buy or sell, is heavily influenced by peak inventory periods will vary depending on location, primarily due to weather, demographics and family considerations.
Metro areas like San Diego, Los Angeles, Phoenix and Miami have less pronounced peaks and valleys, thanks to their year-round warm weather.
Also, fewer buyers in these areas have kids, which allows them to buy without factoring in the school calendar, soccer practices, piano lessons and the other myriad of obligations that parents face daily.
So, if there are better months to buy or sell a home is there a better day of the week?
Surprisingly, day of the week matters too!
Out of 5.5 million single family home and condo sales over the last 15 years that closed on a Monday, buyers realized an average discount of 2.3 percent below full estimated market value at the time of sale.
Friday is the second-best weekday to close on a home purchase. Buyers who closed on Friday realized an average discount of 2.0 percent.
Thursday is the worst day of the week to buy a home, with a 1.0 percent average discount, followed by Wednesday with a 1.4 percent average discount, and Tuesday, with a 1.9 percent average discount.
There you have it, turns out that the common real estate agent cry urging us to buy in the off-season is actually backed by real data.
So, what are you waiting for? You have work to do if you want to be ready in time for the savings.
Monday in October will be here any day now.
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