Based on their fourth annual Best Time to Buy Report, Realtor.com® has declared the week of September 25 to October 1 the best week of 2022 to buy a home.
What does this week have that makes it the best of the year for homebuyers?
- Lower prices
- Less competition
- More homes to choose from
- More time to decide
Here’s the breakdown.
Why is it the best week of the year to buy a home?
Higher mortgage rates started the normalization process of the U.S. housing market earlier in the year after a period of unsustainable growth during the pandemic. While mortgage rates increased, buyer demand has cooled, giving inventory a chance to build up.
The market has plenty to offer for motivated home shoppers. Here’s a look at the housing market forecast for Realtor.com’s best week, which lands in early fall:
- More than 6% of listed homes with reduced prices.
- Savings of over $20,000 on average, relative to this summer’s peak price of $450,000.
- About 46% more homes to choose from, compared to the average week.
- Days on market is expected to be 15 days longer compared to the summer’s peak.
- Demand is 26.9% lower than this year’s peak week and 8.5% lower than average.
After several years of an overheated housing market, higher mortgage rates are helping usher in more regular seasonal trends, which have pros and cons for home shoppers. If you’re flexible on your timing and can budget for higher rates, early fall can be a great time to secure a home, with a number of factors aligning to make it the best time of the year both in terms of price and competition. This is especially true for first-time buyers and others who are not trying to sell a home at the same time as their purchase.
Key benefits to buying a home the week of September 25
Let’s take a closer look at each of the benefits of buying a home this week.
- Reduced prices—Compared to the historical average of 5.2%, more than 6% of listed homes may have reduced prices during the week of September 25. This would translate into approximately 48,000 homes available at a reduced cost.
- More listings—While active listings haven’t bounced back to pre-pandemic levels, they have increased year-over-year and year-to-date. The best week could see 780,000 listings, which is 46% more than the year’s average to date.
- Less competition—Frenzied buyer demand has cooled with the rise in mortgage rates. Historically, views per property listing on Realtor.com during the best week to buy has been 26.9% lower than its peak in July and 8.5% lower than average.
- More time to decide—Days on market for homes will be longer, giving buyers more time to make purchasing decisions. Historically, during the best time to buy, a typical home will stay on the market for two weeks longer than the peak market pace and one week more than the average to date.
What does this mean for agents?
Share this data with any clients who may be on the fence about buying a home this time of year, whatever their concerns may be. If any are motivated to buy during the best week of the year, help them make the most of their advantages.