Should October be the month you head into home ownership?
- Buying a house at the right time can help you get the right price.
- There are pros and cons to buying in different seasons.
- October can be a good month to buy a house.
October is upon us, which means it’s time for wagon rides, pumpkin spice lattes and Halloween decorations. But is it the right time to buy a house?
It all depends on your priorities and your financial situation.
Here’s what you need to know to help you decide if you should consider bidding on a property this month.
Why October could be the perfect time to buy a house
This month could be the perfect time to buy a home for a few key reasons.
First and foremost, there is generally less demand for homes during the fall months. Most people with children want to be settled before school starts and are not looking for properties. Sellers know this, and they may be much more desperate to unload their homes if they have to move now. You’re likely to encounter lower list prices because of this, and sellers will be much more willing to negotiate – especially if they really want to move before the holiday season arrives.
You might also be able to get a more affordable mortgage now than you might in a few months. Mortgage rates are much higher today than they have been in recent years, so you’re not going to get a floor loan rate. But, rates are likely to continue to rise even higher. The Federal Reserve could raise interest rates again to help keep inflation in check, which could push rates to even higher levels when that happens.
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So if you want to buy soon, October may be your best chance to act before rates continue to climb and while there is still a reasonable amount of inventory available. Although there are fewer homes to choose from now than in the summer because most people don’t list in the fall, there’s a good chance the inventory will be higher than in the winter. , when a real downturn usually occurs because people don’t want to move during the holidays or in bad weather.
Why you might want to wait to buy
While there are great benefits to buying a home in October, there could also be downsides.
First of all, as mentioned above, there won’t be as many homes for sale as there would be if you were buying during the summer, simply because the hottest season when school is over, is the most popular time for people to list their homes. Sellers generally won’t be as desperate to unload their properties in the fall as they are in the winter, so you could potentially see lower prices (but even less inventory) if you delay for a few months.
Interest rates are also much higher than they have been in a long time, so your mortgage will cost more than expected. You need to make sure you’re in good financial shape before making your purchase and that your home is affordable. If you don’t have a reasonable down payment, a good credit score, and plenty of money to pay your mortgage payments, you should definitely wait to buy until you are better prepared financially to become a homeowner.
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