October 9, 2017
Fall is arguably the best time of year for many reasons. In most areas the weather becomes cooler, the leaves begin to change, football season begins, and pumpkin-flavored everything is in abundant supply. But there's another great reason Orion’s brokers love the autumn that might be less obvious: it's a great time for their clients to purchase a home!
Although prices in Orion’s footprint have been going up, the pace usually slows in the autumn. Two recent reports validated the line of thought that buyers can get a better bang for their buck in the fall. According to a 2015 report by RealtyTrac, sales prices are typically 2.6% below fair market value during October — a steeper discount than any other month of the year. Another report by NerdWallet found that sales prices drop about 2.96% from summer to fall, which is roughly an $8,300 discount for the median home. It's also worth noting that while listing prices don't decrease much, sales prices do, and that's the price that counts for potential buyers.
We’ve been hearing that there's a little less competition for a house in some areas. Most people buy a home in spring or summer, when inventory is traditionally high. This gives families time to make their move before the school year starts, but the tradeoff is that buyers are faced with strong competition and often pay higher than asking price during that time. People who buy in fall, however, have less competition, and sellers may be more motivated. This means more negotiating power for the buyer, which often results in a better deal, especially when a good broker helps with the financing.
And there’s still inventory. It's true that the inventory of homes for sale is at its peak during spring and summer, but when you buy in the autumn, there's still a decent supply of homes left to choose from. Orion’s brokers are telling clients that if they’re serious about buying a home, doing so this fall may save money or help their client afford more than they expect. Plus, if interest rates creep up, the longer one waits, the less buying power they may have.