What are the advantages of buying a home during the fall?

As back to school vibes are in the air, we start to think about the fall season that is upon us. Fall also brings a new real estate season that is typically very active for both buyers and sellers. With summer vacations and long weekends now a memory, the fall is ideal for buyers to take the time to focus on the home search process.

1. After the spring market, the fall is the busiest real estate market of the year. The fall market kicks off after Labor Day weekend and we typically see a large wave of new inventory come on the market. If you’ve been searching and haven’t yet found the perfect home, the fall may bring new options for you to consider.

2. The fall market typically brings price reductions. As we progress into the fall season, many sellers are anxious to sell before the holidays and the winter arrive. If you’ve seen a home that you love but is over your budget, you may see a price reduction in the fall and the seller may be more open to negotiating the sale price.

3. Interest rates continue to rise and experts predict that interest rates climb to more than 5 percent in 2019. Not only do rising interest rates mean that a mortgage will cost you more in interest, it also impacts buying power. The loan amount that you can qualify for will be reduced considerably if interest rates go up by 1 percent, which means that you need to buy a less expensive home. For example, the buyer who is able to afford payments of up to $ 1,432 per month would have the purchasing power to buy a $ 300,000 home with a 4 percent interest rate. If that same buyer who is able to afford payments of up to $ 1,432/ month is now looking at an interest rate of 5 percent, the buyer is only able to buy a home for less than $ 267,000.