The leaves aren’t the only things falling this autumn, it’s Fall Home Buying Season!
Now that the kids are back in school and the holidays are just around the corner, the Denver real estate market has become easier for buyers this fall season. Homes are staying on the market a tad bit longer these days. In August, attached homes generally went under contract in 26 days, while attached properties were at 25 days. This resulted in the close-to-list price decreased by .43 percent, allowing for more negotiating power in the hands of the home buyer.
People are starting to see more price reductions, what does that mean? Fall can be a terrific time to purchase a house. While interest rates continue to fluctuate, various down payment and loan options make fall a great time to buy a home. With less competition and more inventory, home buyers have more leverage and can be more patient in selecting a home that fits their needs.
Broker Owner, Jenny Usaj, comments on these trends, “With 1.8 months of inventory, buyers have more options and less competition than previous months. Keep in mind that when inventory dips below one month we start to see multiple offers. Fall is a great time to be picky, negotiate the price and terms you want then when the interest rates lower next year, you will be ready to do a refinance! Our lending partners are offering to refinance loans after six months. Fall is a great time to get into the market and be settled before the holidays”.
So before you put off buying a home, consider the following points and why you should try to seal the deal on a house this fall.
1. Less Competition
Many buyers want to complete their home purchase by July so they can be settled by the time their kids start school. By October, the “rush” is over and buyers can be more deliberate in searching for a property. Often people feel they have to make a move in the Summer. Unfortunately, when there is more demand; conversely, in the fall, calmer heads prevail and buyers can end up with a better property that is more appropriately priced.
2. Sellers are Motivated
If sellers put their property on the market in the spring with intent to sell by end of summer, they are now ready to jettison the property. Even if the price is still a problem, make an offer! You never know what might happen. As my mother always said, “Don’t fall in love with the merchandise until after you’ve paid for it.”
“Many of the homes on the market now are showing a more thoughtful and competitive price point,” said Jenny Usaj, managing broker at Usaj Realty. “With that being said, the seller’s motivation to get into a new home or job can work in a buyer’s favor when negotiating price.”
3. Market Rates/Tax Breaks
There’s no getting around it: mortgage rates continue to rise. The days of a 3 percent interest rate are long gone but there are still terrific down payment plans and a variety of loans out there that will fit your unique situation. It’s time to sit down with at least a few lenders to find out what type of mortgage will work best for you.
“Buying a home is a great tax break before the end of 2023,” said Usaj. “We love to work with tax professionals to make sure that you are maximizing your options. Also, should you decide to rent your house, you can also get tax benefits and new cash flow for next year.”
4. Gaining a Sense of Community
By investing in a home, you also establish a stake in your selected neighborhood. Owning a home opens up a whole new world to establish new friends and become part of a unique community.
Many studies have revealed that home ownership provides a variety of social benefits. Homeownership boosts the educational performance of children, induces higher participation in civic and volunteering activity, improves health care outcomes, lowers crime rates, and lessens welfare dependency.
With a home purchase comes the pride of ownership and the sense of belonging in a community. Also, ownership entails greater individual responsibility. More recent studies have found that the wealth-building effect of home ownership and the sense of control it provides to homeowners in a stable housing market affect homeowners’ mental and physical health in a positive way.