Last month, the Federal Reserve made a notable decision to cut interest rates, offering relief to prospective homeowners after enduring several years of rate hikes. The Fed has signaled the likelihood of continuing to reduce rates through this year and into the end of 2025. This leaves many buyers questioning the optimal time to finalize a home purchase.
Recent findings from Realtor.com indicate that the best period to buy a house this year falls between September 29th and October 5th. Danielle Hale, chief economist at Realtor.com, has highlighted that a significant dip in market demand during this timeframe drives prices down and provides buyers with more time to make such an important decision.
Given that home prices and uncertainty are primary stressors for prospective buyers, this specific week may offer a beneficial buffer. Hale points out that market demand drops by 30% at the end of September and the beginning of October, potentially leading to a notable price decrease.
“Our research identifies this week as the optimal time to buy because we observe a dip in buyer demand within the housing market. This situation creates a favorable opportunity for buyers who have flexible timelines, particularly those who do not need to sell, such as first-time homebuyers,” Hale stated. “They can leverage the reduced market demand—30% lower than the peak season—which typically results in softer prices that are expected to decrease by about $14,000 compared to peak season, along with longer time on market.”
The lower pressure to make immediate offers compared to the peak spring season is advantageous for new homeowners or cautious buyers. “Buyers will have more time to make decisions, which is a significant benefit for first-time buyers or those unfamiliar with the process. It gives them more time to make what is, for many, the biggest decision in their purchasing life,” Hale explained.
Understanding the seasonal rhythms of the housing market, Hale noted that fall sees many buyers pulling back, leading to softer market conditions that provide opportunities for flexible buyers. Sellers tend to capitalize on renewed market interest during the spring and summer, aiming to sell one home and purchase another quickly. Consequently, buyers find fall to be a more favorable time as the market slows down.
“Spring generally favors sellers due to heightened buyer activity early in the season, making the market more competitive for shoppers and a bit more challenging,” said Hale. “For those attempting to buy and sell simultaneously, spring’s increased activity facilitates achieving both goals within a short timeframe. Therefore, fall is the best time to buy, especially for those focused solely on purchasing without the need to sell.”
Furthermore, the reduction in mortgage rates, driven by the Fed’s recent rate cuts, suggests that the housing market may soon become more favorable for buyers. “The easing of mortgage rates in the past few weeks, thanks to the Fed’s significant rate cut, further enhances affordability conditions as we approach this optimal buying period,” Hale concluded.
