The time has come for you to purchase a new home. As you start to look at real estate around Chicagoland, it occurs to you…when is the best time to purchase a home? You may be thinking, “Is fall the best time, summer, or spring? Definitely not winter!” This question is first on your list to ask your realtor.
So when is the best time of year to purchase a home? Your realtor will probably tell you that the fall and winter months are actually the best. According to realtors, this is true for multiple reasons. There is less competition from other potential buyers, and families have especially hectic schedules with school back in session. If this is what your realtor told you, then he or she is correct. A study performed by RealtyTrac examined data to determine this fact’s validity. It turns out that it’s the truth; fall and winter are the best times to purchase a home.
The study covered the last 15 years of data. Upon its completion, the study determined that October is the best month to purchase a home, and buyers received the best deal. The average sale price of a home was 2.6% below the full market value. This is the time of year when families are busy with school schedules and getting ready for the holidays. Buying a new home is the last thing on their minds. This creates a non-competitive market for buyers where they can negotiate for a best price.
Other than October, January, February, July and December are also months that may benefit buyers. While this shows that the fall and winter months are the best times to buy, July is still more of a sellers’ month. April is also considered a sellers’ month because buyers will still purchase homes that are at least 1.2% higher than the market value.
The study also researched the best day of the week to purchase a home. If you close on a Monday, you are able to save money because homes were discounted 2.3% below the market value at the time of the sale. Friday is also a good day to purchase your home. The study found that you should avoid purchasing on a Thursday because the home was only 1% below the estimated value.
October 8th is a good day to buy according to the study. The RealtyTrac study showed that consumers were able to close on their home with a significantly lower market value, around 10.8%. This is due to the increase in home choices and less competition. Homeowners who didn’t manage to sell during the summer must now lower the price to entice buyers.
Another surprising fact the study discovered is that professional sports play a role. Super Bowl Sunday is one of the days that buyers can purchase a home at a lower value.
If you are looking at Chicago real estate, when is the best time to buy? RealtyTrac found that potential buyers can receive up to a 10% discount on September 30th.
The study offers potential buyers and sellers an understanding of the real estate market and why it fluctuates so much. To read the study in its entirety, click here.
With winter and the holidays approaching, now is the time to start looking at Chicago neighborhoods and doing research to find your dream home. Although September 30th has passed, the next three months contain the other five best days to purchase a home at the lowest price.
What day did you buy your home? Did it confirm the study’s findings? Leave a comment below and let us know your thoughts. For more information on real estate in Chicago, visit www.chicagorealestateforum.com.