Sep 02 2022

Five reasons to buy your home this fall

The market has shifted: Is it still a good time to buy a house?

Today’s housing market isn’t anywhere near as frantic as it has been. Crowds have thinned, and sky-high bidding wars are becoming more of the exception than the rule. The market is still competitive in many areas, but new opportunities are emerging for this fall’s flock of homebuyers.

Price cuts, plus 4 more reasons to buy a house this fall

Are you thinking about buying a house? Here are some of the perks of purchasing this season:

1. Housing inventory is loosening up.

The inventory shortage of the past two years has helped drive up housing prices. Though it’ll take time to counterbalance today’s historically low supply levels, there is relief in sight. The supply of homes has been increasing throughout 2022. Right now, there are 31-percent more active listings compared to a year ago.

It helps to remember that:

  • More listings turn up more options. If you, like many buyers, put your house-hunt on hold because you struggled to find a suitable home in your price range, you may now have more houses to choose from.
  • Even though the market is moderating, it remains competitive. The average listing is receiving more than three offers. It’s still important to get pre-approved* before you shop so you can submit a strong offer.

According to the Realtor.com® 2022 Forecast: “As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, Realtor.com®'s newly-updated 2022 forecast predicts inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home.”

Fall for your dream home—and get it. Use Academy’s Pre-Approval+ to take your offer to the next level.

2. Buyer demand is moderating.

Whereas spring and summer are typically the busiest buying seasons, fall is when you’ll see less competition among homebuyers.

This means that:

  • The summer buyers hoping to move while school is out will have either put their hunt on hold or found a house. Only the serious homebuyers will stick around.
  • Likewise, sellers may also be more serious. Sellers might hope to close quickly—before the end of the year, often for tax purposes—motivating many to throw in incentives to attract offers on their house.

Simply put, you shouldn’t have to worry as much about bidding wars as a fall homebuyer. This can help to decrease stress and conserve your funds; no need to put cash toward an offer over asking price that could be used for closing costs or a down payment.

3. Mortgage rates are likely to keep rising.

Since the beginning of the year, mortgage rates have risen by several points, indirectly linked to the Federal Reserve’s efforts to control inflationMost housing authorities agree that rates should continue inching up and aren’t expected to decline.

A higher mortgage rate can lead to a higher monthly payment. This is why, for many homebuyers, it’s worthwhile to consider buying sooner. If you buy a house now, instead of waiting until next year, you might save hundreds on your monthly mortgage payment. Your Loan Officer can provide you with a cost of waiting analysis if you’d like to run the numbers.

Though they’ve risen, mortgage rates are still historically low. What we’re seeing is a real estate market returning closer to its pre-pandemic levels. Mark Fleming, First American Chief Economist, says, “As the housing market adjusts to a post-pandemic norm with higher mortgage rates, housing market potential will subside from recent highs, but those highs were the exception and not the norm.”

4. You could see price cuts.

It’s still a seller’s market—for now. But due to affordability challenges triggered by increasing home prices and mortgage rates, sellers in many cities have been forced to cut their prices. Factor in that the fall is technically an “off-season” for real estate, and you may see even more seasonal price drops. Among Realtors®, fall is known to be the time of year to lock in a better price on a house.

This may be more likely if a home has been sitting on the market. With added inventory now available, some sellers—especially in cities that saw rapid, pandemic-related price appreciation—may opt to drop their prices to remain competitive.

5. You can start to build your own prosperity.

Unless you’re living rent-free, you’re always going to be paying a mortgage. It may be your landlord’s, or it may be your own once you become a homeowner. The difference is that your monthly mortgage payment goes toward building your own prosperity, instead of helping to build wealth for someone else.

In the past year, the average homeowner gained approximately $64,000 in home equity. While homes aren’t predicted to appreciate at near the rate we saw last year, home values aren’t projected to depreciate. Meaning, if you buy a house now, you can still expect to progressively build equity—or your prosperity—that could be used to fund renovations, unforeseen expenses, or a move into a larger home in the future.

Does buying this fall make sense?

With the potential for price cuts and flexible negotiations, this fall is the season you could get a great deal on a house. Start your house-hunt strong with Academy Mortgage’s new Pre-Approval+Connect with a local Loan Officer to take your pre-approval* a step further, strengthening your offer and helping you close faster.

*Pre-approval is not a commitment to lend. This is for informational and educational purposes only and not intended as an advertisement as defined by Regulation Z. Please consult a trusted professional as personal circumstances may vary. No specific results are guaranteed. MAC823-1482634.