October may not seem to be the best time to buy a new house. Most people start looking in March and April, hoping to move in summer and be ready for the next school year at the end of August.
Sadly, many buyers use this exact same strategy. It leads to competition and bidding wars in spring. That’s why I recommend buying during the “off season”.
Here are 4 reasons why you should buy a new home this fall and save a ton of money.
1. No Competition
Between October and January 40% fewer buyers are looking for homes. There’s less competition, and you will likely avoid a bidding war.
If you are moving up into a home above $400,000 you will find a great selection of properties and very motivated sellers. In this price range existing home listings compete with new builds. Sellers are more likely to accept lower offers.
2. Low Interest Rates
Interest rates have consistently dropped over the past 12 months. Your affordability is higher than ever. In October 2018 you had to pay 4.8% for a 30-year fixed mortgage. Now the interest rate is down to 3.6% (see Freddie-Mac chart below).
On a $400,000 loan your monthly payment is $280 less than a year ago.
3. Rising Home Values
The average sale price of existing homes has increased by 6.3% this year. Delaying your buying decision will cost you more money.
If home values continue to rise at this rate, a $400,000 house may cost $412,600 in just 6 months.
4. Builder Discounts
The end of the year is the best time to negotiate discounts with builders.
Many builders have move-in ready homes on their books. Inventory that does not sell is bad for their balance sheet. They are very motivated to move these homes before the end of the year.
This means buyer’s incentives and possible discounts for you.
Call or text me at (614) 975-9650 before you talk to a builder and take advantage of my new construction experience and negotiation skills to find the best deal for you.