What Buyers can Expect from the Fall Real Estate Market this Year?
Summer season has formally ended, and fall has made a beginning. Change of season not only starts cooling down of temperatures but also has a significant impact on the real estate market. If you are a buyer, you must be prepared for slowing down of the housing market after a hectic spring and summer season. But you may be surprised to find that the housing market in your area remains active during fall rather than cooling down. It pays to be prepared for the fall market trends as it gives you an advantage over other buyers.
Be ready for higher prices
Barely a month ago, median home prices across the country stood at $253,000 during peak summer season. This was nearly 6.5% higher than median prices at the same time last year. Don’t expect prices to cool down just because fall season has started. According to zillow.com, prices will continue their upward trend for the next 12 months and you may not get any respite during fall season.
Prepare to face shortage of inventory
Low inventory has been a big problem for home buyers for some time now. While supply of homes in many housing markets may be a little better than it was during spring and summer months, you may not see market returning to a healthy supply of 4-5 months. Because of shortage of homes, you will need to chalk out an aggressive strategy to be able to buy a suitable home for your family.
Don’t expect any less competition
In recent times, fall has emerged as the 2nd best time of the year after summer to buy and sell a property. Slow sales in August are a lull before the storm as buyers come out in large numbers, looking to buy homes before the start of the holiday season. There are always people relocating and families with no kids or grown up kids looking for new homes. So be ready to face a tough competition if you could not buy your dream home during summer months.
Take advantage of low mortgage rates
Spring and summer 2017 saw mortgage rates increasing to mid fours after hovering at around 4% for a very long time. These rates have dropped down to slightly above 4% for 30-year fixed mortgages to give buyers the advantage of increased buying power. Make the most of these historically low mortgage rates before they start to creep up once again.