Fall has officially arrived. What does that mean for buyers looking to purchase in 2015? Increased inventory coupled with historically-low rates make this Fall a great time to hone in on buying your home during 2015. Plus, those searching now will likely close and take possession of their new home before the holiday season begins. Think, you could be hosting Thanksgiving dinner for your family and friends in your new home.
Here’s why now is a great window of opportunity for buyers:
- The Federal Reserve decided to not increase the short-term interest rates in their meeting on September 17th. This was a bit of a surprise to most of us, including financial experts who were anticipating the Fed to make their first rate increase since 2006. This is great news for buyers as it means that mortgage interest rates should stay low for a little while longer. That said, with the economy doing really well, industry experts continue to speculate that the Fed will increase rates before the year is over. The Fed meets 8 times a year (about every 6 weeks) which means the long-anticipated rate change could occur as soon as the beginning of November.
- You may have noticed that July and August were slow months for new inventory. During that time, people are traveling and going on vacations or otherwise tend to stay inside to avoid the heat and humidity. Agents know this trend well so they encourage sellers to list their homes after Labor Day if they can wait. Outside of the Spring market, the Fall is traditionally the next best time of year for sellers to list their home for sale. As a result, we typically see a spike in new inventory during the months of September and October. The increased inventory means that buyer demand will likely be spread a little thinner over that increased inventory. This does not mean that hot properties that are priced well are going to sit on the market for any longer than before but does mean that we’ll hopefully see fewer buyers competing for a single property.
If you’re considering purchasing a home in 2015, we believe the ideal window is between now and November while rates remain at their lowest in years. To give you an idea of the savings, on a $500,000 mortgage, the difference of 1/2% in mortgage rates equates to $146/month. That comes to $1,756/year and $8,781 over a 5 year period. That’s a nice little summer vacation budget for most of us.
If you’d like to make it a goal to be in your new home for the Holidays and to take advantage of today’s low interest rates, feel free to reach out to us to schedule a buyer consultation.