Is it time to fall into homeownership?

October is here, and the fall season is finally in full swing! The change in season might have you wondering if you should make a change in your life and fall into homeownership. While the spring and summer are the hottest times for the housing market, there is certainly an argument for buying a home during the autumn months. If you are a first-time home buyer, this is a move worth considering. Here’s what you can expect from the fall real estate market, and how you can prepare yourself for the home-buying journey!

What to expect from the fall real estate market 

What does autumn mean for the housing market? The fall offers unique conditions that can be beneficial for home buyers, even though this isn’t typically the most popular season for purchasing. First, a fall market usually means less competition from other buyers. The majority of people like to buy in the spring and summer, which is why prices increase and bidding wars are frequent during this time. This can be stressful for buyers, but the good news is this demand tends to drop off by the fall. Fewer people are actively on the market, which means there is less pressure and intensity from other buyers. This provides a more relaxing buying atmosphere, which allows you to take your time looking for the right home without major stress. 

Since there are fewer buyers looking to fall into homeownership in the autumn, sellers will be more motivated to try to get their home off the market. This is especially true if their home was listed over the summer, or they are aiming to close the sale before the end of the year. These sellers will be more flexible with timelines, terms, and maybe even price. 

What does this mean for new home buyers? 

As you may have guessed, the fall housing market can be a great time for first-time home buyers. Competition is lower, but inventory hasn’t reached its winter lows yet, where very few homes tend to go up for sale. This provides you with a great balance of conditions! You will have more breathing room and time to consider your options and make the right decision for you. You will not have to rush into a purchase that you would prefer to take your time with, which allows you to thoroughly evaluate your situation. It makes a big difference to your buying experience when you have more freedom to browse and think before acting, without the fear of missing out on a sale.

Evaluating your current savings 

Before officially diving into the fall market, you should evaluate your finances and your current savings. You will need a solid level of funds to support your down payment, closing costs, and mortgage payments. Larger down payments lower your monthly mortgage costs, and allow you to avoid mortgage default insurance. Ideally, a 20 per cent down payment is a good target, which means you will need tens of thousands of dollars ready to hand over upfront. Saving for this payment can take quite a while, with many buyers preparing for years in advance. If you are hoping to fall into homeownership this year, be sure to see where you stand with this cost. Your closing costs are another big chunk of change you will need to give up before you can move into your new house. These are typically about 1.5 per cent of your home’s purchase price and  include items like legal fees, moving costs, insurance, and other taxes. Finally, your actual mortgage payments will be with you for several years! These tend to be a couple thousand dollars each month, often similar to a typical rent price. You will need to ensure you can support all of these payments before jumping into the fall market.

Where to start!

Once you’ve decided you want to fall into homeownership, the real work begins! First things first, you will need to get a mortgage pre-approval. This helps you understand your potential buying power and the amount you may be able to afford in a home. It also gives sellers assurance that you are a serious buyer, which can give you an edge over other candidates. All of this helps you determine where you stand in the market! Don’t forget to work with a mortgage broker as well. We can help you navigate all aspects of the home buying process, while finding you the best product and terms. 

Fall can be a perfect opportunity to jump into homeownership, since competition is often lower and motivation to sell tends to grow. If you’re thinking about buying a home, be sure to let your broker know! We are here to help you navigate this process with ease. Happy house hunting!

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.