Chief Economist of Realtor.com, Jonathan Smoke, recently released analysis showing why he thinks September will be the best month to buy a home in 2015. Most of these reports are usually only supported with anecdotal data best. In Jonathan’s analysis, he backed it up with numbers, which as an Engineer, you know I love. His analysis was based on US numbers, but when you compare to Austin numbers, the analysis holds. Here is why he says September the best month to buy a home in Austin.
Three things were cited in Realtor.com’s report:
- Increased Supply
- Decreased Demand
- Low Interest Rates
Sellers Scrambling to Sell Before the Winter Slowdown
No one wants to deal with selling a home during the Holiday season. There is enough going on without having to worry about keeping the house spotless to show at a moments notice. Sellers who are looking to make a move and missed the Spring/Summer boat are scrambling to get their homes on the market and sold before Thanksgiving.
As we’ll see in August 2015’s Austin Real Estate Price Report, home supply has gone up 47% since the December 2014 low, while only declining 2% since July 2015. With essentially the same supply we saw during Summer, September buyers will have more choices than they’ve had in 10 months with less competition.
Back to School Means Decreased Home Buyer Demand
We see this every year. Parents stop thinking about making major life changes when they are trying to get the kids settled in school. They might pick it up in October, but chances are, many of them are waiting until Spring as school winds down. For those of you who experienced the strong demand in the Spring/Summer, you know how quickly you had to move to have a shot at submitting your offer. Keep being proactive in your home search and you’ll have a chance at virtually every home that’s listed.
September Saw the Biggest One Week Drop in Interest Rates Since January
September saw the biggest one week drop in interest rates since January 2015 bringing interest rates below 4%. Compared to interest rates this time last year, home buyers can afford 10% more and keep the same payment. But, rates below 4% are not expected to last forever. Experts predict interest rates will rise in the near term. Just how quickly, no one knows. But, if Austin home prices continue to rise as well, you might be priced out of your favorite Austin neighborhoods if you wait to buy until Spring. For a more in depth analysis on interest rates, check out The Mortgage Reports post here.
Isn’t Winter is the Best Time to Buy a Home in Austin?
If you’re looking for the absolute best deals (rock bottom prices), I still contend Winter is the best time to buy a home in Austin. Sellers willing to endure the home selling process during Winter are doing so for a reason. They need to get their homes sold. They can’t wait for Spring, even if it means more money. Motivated sellers who need to sell tend to make better deals to buyers.
But, some buyers who look during Winter complain there aren’t enough choices. There is definitely a balancing act between rock bottom prices and supply. If you are someone who prefers more choices, September might be the best month for you to buy a home in Austin.
Convinced September is the Best Time to Buy a Home in Austin?
Better get started now! We specialize in representing buyers and helping them negotiate the best deal on the best house for them. With over $200MM real estate sold and a combined 58+ years of experience, there isn’t much we haven’t seen or can’t handle. And, we know the area better than any other Realtor. Check out our Austin Home Buyers page to learn more about our team and our home buyer program. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to get started.