Housing News

The Best Is Yet to Come: October Is the Best Month to Buy a Home In 2024

October offers treats, not tricks, for potential homebuyers.

That’s because the week of Sept. 29 through Oct. 5 is the best time to buy a home in 2024, according to a Realtor.com report.

Homebuyers who buy during that week may be able to save more than $14,000 over those who bought during the peak of summer when prices were higher.

They are also expected to have more homes to choose from during the first week of October. Realtor.com anticipates about 37% more home listings available than at the beginning of the year.

“This year buyers who are looking for that optimum mix of ample options and the potential to save on list price are going to find some of the best market dynamics in years during the first week of October,” said Danielle Hale, chief economist at Realtor.com, in a statement.

Realtor.com analyzed list prices, the number of homes for sale, new home listings, time on market, homebuyer demand, and price reductions at a national level from 2018 through 2023. The analysis excluded 2020, which had an abnormal housing market due to the pandemic.

Why is October the best time to buy a home?

If this short buying window makes you anxious, don’t worry. The following two weeks will be the second and third best weeks to buy a home consecutively, according to Realtor.com.

“These weeks boast many of the same benefits as the best week, but are just slightly less favorable due to falling new listing activity,” said Hannah Jones, senior economic research analyst at Realtor.com, in a statement. This means there may be fewer homes for sale in those weeks.

October is a prime time to buy a home for several reasons. Historically, the first week of the month offers more homes for sale, lower prices, a slowing market, and less demand than during the busiest summer months.  

During the market’s summer peak, the break from school and the warmer months combine to increase activity in the market as buyers try to move while kids are out of school. The warmer months also make showings and inspections easier while curb appeal is increased by the abundance of plants.

As summer ends, housing demand generally decreases. Many parents have already purchased homes and moved in before the school year starts. That falling demand helps prices to come down a bit.

It also means less competition. That could result in fewer bidding wars and offers over the asking price of the home.

However, lower mortgage rates could be a wild card this fall. Rates came down in anticipation of the U.S. Federal Reserve cutting its rates in September. Generally, when the Fed lowers rates, mortgage rates follow.

The question now is how much lower rates will go.

Lower rates could incentivize more people into the housing market, making it more competitive this fall. They could also make buying a home more affordable.

“Mortgage rates are lower than this time last year, which means buyers are in a better position this year to take advantage of increasingly available inventory and afford their dream home,” the Realtor.com report noted.