Autumn has traditionally served as the “second spring” for real estate. Home sales typically spike as eager sellers attempt to take action prior to the winter lull.
With recent metrics indicating home prices are trending upward and supply trending down versus last year, how can savvy buyers pursue their dream home this fall while also protecting the bottom line?
Fall home sales offer some of the best deals in residential real estate
Recent trends indicate reduced inventory and a slight price increase for listings versus last year
The current environment means a little strategic direction is imperative
Three simple tips can ensure you make the most of your search
Tip #1- Stay the Course
The first piece of advice if you are searching for a new home is to keep looking! The best time to purchase a new home is when you find one that meets your needs, and regardless of the metrics a fall purchase presents several distinct advantages.
Pricing- While the super-heated inventory in spring may be missing this time of year, so too is the super-heated pricing. October home purchases are typically among the best you’ll see all year in terms of value.
Motivated Sellers- Fall also typically offers a much more motivated seller, this also has an impact on pricing. As much as you’d love to be in your new home before the snow flies, it is a fraction as much as a seller carrying two mortgages may wish to be out.
Less Buyer Competition- School has started, it is cooling down and daylight is waning. This translates into less time and interest spent home shopping. Those motivated sellers are seeing less traffic through their properties and this means they may be more amenable to those they do see.
Tip #2- Refine that Search
In a reduced inventory environment like we are seeing this fall it becomes of paramount importance that you see every home that may fit your family. To ensure this, it is crucial to strategically expand your search criteria so that you can consider a variety of properties. Listing requirements can be notoriously specific and that means that even search criteria set with the best intentions can unknowingly filter viable homes. An experienced agent can help you dial in those parameters separating the wants from the needs and finding properties that fit.
Tip #3- Show Up Well
When you do find a property you love, current market conditions mean that it is important to put a strong offer forward. This means giving careful consideration to your offer price, contingencies and other factors. While you certainly need to negotiate terms that are amenable to your family, you should also consider making a competitive bid and removing as many contingencies as possible. A seller looking to be out by winter may cringe at a contingent sale.
The Bottom Line
Rising home prices and reduced inventory may seem daunting today, but trends from the fall market have a habit of carrying into the next year. So today’s moderate uptick in prices may portend a larger uptick next year. Couple this with the wildcard of today’s low interest rates and the inherent advantages listed above and it really makes this fall a wonderful time to consider purchasing a home. A little strategic thought can help ensure your success in that endeavor.
• Ready to get started? A free consultation with our team can help you understand the market, refine your search and take action. No one understands the west metro market better and help is just a click away. Or call us at 612-656-9647