💼 In This Economy? Never.
briefcase | invest smarter | Issue #143
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📆 October 1-7
Conventional wisdom is that springtime is when you’ll get a better deal when shopping for homes.
But we’re here to tell you, don’t fall for that advice.
In this ridiculous real estate market where supply is low, there isn’t much inventory on the market, and mortgage rates are more rowdy than an Oktoberfest party, buyers need all the help they can get.
So when is the best time for us to scoop up a piece of the American dream?
Based on the wizardry of Realtor.com's number-crunching, the week of October 1-7 is said to be the golden period for home buyers this year. It's not just about the spookiness of Halloween; it's a week where:
Inventory Peaks: You can spot up to 17% more active listings than January's start.
Price Drops: Anticipate savings nearing $15,000 compared to the summer's price zenith.
Balance in Power: Historically, this week has displayed the finest equilibrium of buyer-friendly market conditions.
The week of October 1-7 historically has the best market conditions for buyers, with high inventory, lower prices, and a slower market pace. School schedules and weather patterns also influence this slowdown.
But not all markets agree on the October 1-7 timeline…
New York-Newark-Jersey City: Sept 10-16
Philadelphia-Camden-Wilmington: Sept 10-16
Miami-Fort Lauderdale-Pompano Beach: Jan 8-14
Atlanta-Sandy Springs-Alpharetta: Oct 8-14
Boston-Cambridge-Newton: Sept 10-16
That said, 13 of the top 50 metros in the U.S. have October 1-7 as the most opportunistic time to purchase a home. This period traditionally sees 20% more listings, with listing prices being 5.8% below peak levels in these zones.
The housing market volume is busiest in spring and summer, driven by families wanting to move before the school year starts. This leads to a surge in activity. However, as fall approaches and families prioritize school schedules, demand decreases, and prices dip. Early fall is the ideal time for buyers to have more options at a reasonable price.
Also, fewer folks are window-shopping homes, reducing the buyer competition by 18% compared to peak times according to the data.
2023's Inventory: Although active listings began to plummet YoY in July 2023, the first week of October may still witness inventory levels reminiscent of 2021 and 2022.
Price Patterns: Nationally, prices typically dip 3.3% during this week. Adjusting for 2023's vibes, buyers might save close to $15,000 compared to this year's peak.
Discount Alert: On average, 5.5% of homes see price reductions this week. That's 40,000 homes getting a price tag trim!
The best week in real estate purchasing is one that grants buyers ample time to carefully consider their options, while also enticing sellers who are willing to be more accommodating to secure a sale. In the past, this week has witnessed a remarkable 29% decrease in activity compared to the bustling peak season.
That said, the scarcity of available properties may result in a less pronounced slowdown than usual, as buyers fiercely compete for the limited number of options on the market.
So What? October 1-7…A dream week for investors and house hunters in 2023. With the right inventory balance, price, and market pace, it's time to circle those dates and prep for a buying opportunity.