According to Realtor.com’s “Best Time to Buy” report, the prime buying season is approaching, and now is a good time to start house-hunting. The report states that the first week of October is the most favorable moment to buy property, with up to 17% more active listings compared to the beginning of the year. However, demand is expected to be 18.7% lower than peak buying periods, so homes are likely to stay on the market for a week longer than during the summer. This provides buyers with some breathing room to make a decision.
In addition to more inventory, closing prices are also projected to be over $15,000 less than the peak price of $445,000 in the summer. The fall season presents buyers with some advantages, such as more predictable conditions that can alleviate the stress of higher interest rates and competitive bidding wars.
Realtor.com economist Danielle Hale explains, “Our analysis shows that buying in the fall does give buyers some more predictable advantages that could potentially ease the pain of higher rates and other stressful aspects of the home-buying process, including making fast decisions and bidding wars.”
This timing aligns with previous data from 2022, which indicated that the week prior to October 1st was the sweet spot for buying. So, if you’re in the market for a new home, be prepared to start your search in the coming weeks.
Apartment Boom: Over a Million New Units Expected in the Next Decade
Contrary to the perception of a housing crunch, data from Rentcafe reveals that the past three years have seen the addition of 1.2 million new apartments, the highest number since the 1970s. And the construction of new units is not expected to slow down soon, with another 1.1 million units forecasted to become available through 2035.
By the end of December, a record-breaking 460,860 rental units are projected to be completed in 2023, with a further 484,000 units expected to be built next year. However, after that, there will be a decline in construction due to economic conditions affecting planned development. Only 408,000 apartments are estimated to be built in 2025, a decrease of 15%.
Doug Ressler, the manager of business intelligence at Rentcafe’s parent company Yardi Matrix, attributes the slowdown in construction to tightening bank-lending standards and rising costs of construction materials, labor, and land. These factors have made new projects less economically viable.
New York City leads the way with the largest concentration of new rental units, with at least 33,000 expected to be completed by December 2023. Interestingly, a third of these units will be in Brooklyn. The Dallas metro area follows as the second-largest market, with 23,659 new rentals predicted, and Austin and the greater Miami area are also expected to see significant growth in rental units.
Sources:
– Realtor.com’s “Best Time to Buy” report
– Data from Rentcafe’s analysis and projections