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- The first week of October is considered the best week in 2023 to buy a home.
- There are a number of factors, like lower home prices, higher inventory, and lower demand that work in favor of buyers.
- Make sure you look at all factors like the total cost of home ownership to make sure this is the right time for you.
If you're in the market for a home, this week, the first week of October, may be the best time in 2023 to buy. This week tends to show the best balance of market conditions for potential buyers. Inventory tends to be high, demand is waning, and prices can dip below peak levels. In addition, the market this time of year has slowed compared to spring and summer.
Early fall is typically prime time for homebuyers, who can take advantage of these factors to have a wider variety of options at a better price. Typically during this week, inventory will be higher than other times during the year, and even in the face of skittish buyers, due to interest rates, the seasonal inventory trend is expected to hold true this year.
There will also be less competition from other buyers. Historically, during the best week to buy, demand is 18.7% lower than the peak, which presents a real opportunity for buyers to find and actually secure their home.
And what really draws potential buyers in during this week are the potential price reductions. This week represents a peak week for price reductions with an average of 5.5% of homes seeing price reductions this week.
Check today's average mortgage rates and learn more about the amount of house you may be able to afford.
So with all of these positive factors in play, is this the best week for you to buy a home? Here are a few other factors to consider:
1. Do you have a sizable down payment?
It can take a while to save money for a down payment, but if you can make a larger down payment it will serve you in the long run. Making a larger down payment makes you a less risky borrower to potential lenders and can put you in a position to negotiate a better interest rate.
A larger down payment also reduces your outstanding loan balance. This can create a larger pocket of home equity and allow you to refinance or sell your home down the road.
Plus, a larger down payment can reduce the total amount of interest you pay over the life of loan.
2. Are you in debt?
Many people carry at least some form of debt, and no, you do not have to be debt-free to purchase a home. However, if you are carrying significant credit card debt or student loans, adding a mortgage payment may not be right for you right now.
3. Do you have emergency savings?
You hear so many people state that they were financially wiped out after purchasing their home, and that should not be the case. After buying a home, your expenses will automatically increase and the transition to being a homeowner can be easier if you have savings to fall back on. If you can avoid it, do not try to purchase a home without having any savings in the bank. If you are building an emergency fund, try to have 6 to 9 months of expenses in your savings account.
4. Can you afford the totality of homeownership?
When you are considering buying a home, typically the only thing you will hear about is the mortgage interest rate and the monthly payment. But there is so much more to owning a home than the mortgage payment.
Understand that with homeownership, it's all on you. Lawn care, higher utility costs, appliance maintenance, all of it. Many homeowners move into their newly purchased homes and are shocked at the expense that comes with homeownership in addition to the mortgage.
While this week may be the best week to buy a home for buyers who are ready, make sure that you plan your purchase, taking into consideration factors other than just interest rates and mortgage payments. There is so much more to successful homeownership.
