3 Reasons to Buy a House Before the End of 2024

The last few months of the year are often a time to embrace the holidays, shop for gifts, and focus on year-end financial planning. Buying a home may not be on your radar. Or it might be something you want to do but don’t expect to cross off your list in the coming weeks.

But it may actually be in your best interest to buy a home before the end of the year. Here’s why.

1. Inventory is full

For too long, home buyers have suffered from high prices, expensive mortgages, and a severe lack of inventory. Unfortunately, house prices are still quite high and this may not change for a while. And mortgages aren’t exactly cheap these days either (although things are better than they used to be – more on that in a moment).

But one aspect of the housing market to have It is an improved inventory. According to the National Association of Realtors, there were 1.39 million homes available for purchase in September. This is a 23% increase from September 2023.

The more inventory you have to choose from, the better your chances of finding a home that ticks the right boxes and fits your budget. Additionally, the increase in stock gives you, as the buyer, more bargaining power.

When inventory is low, sellers have the upper hand. Things are looking up now that inventory has improved, which means you may have more leeway to negotiate a lower selling price. And if you find a seller who really wants to close by the end of the year, that might even be the seller. More We are ready to reduce the price.

Ready to get out there and see what’s available? Click here for a list of the best mortgage lenders.

2. You can have minimal competition

Many people can’t fathom the idea of ​​buying a home when they’re busy making holiday travel plans, hosting family dinners, and haggling to meet their gift-buying needs. But if you can manage the holiday season along with house hunting, it may work to your advantage.

If you buy a home in the coming months, you may find you’re competing with fewer buyers. This can make the process less stressful. It can also give you more room to negotiate with sellers.

3. Mortgage rates are not as high as they were a year ago and may fall before the end of the year

As of October 31, the average 30-year mortgage loan interest rate was 6.72%. In almost the same period last year, the average 30-year loan interest rate was 7.79%. So even if there is no mortgage cheap There is some relief on the borrowing front.

There’s also a good chance mortgage rates will drop before the end of 2024. We have already seen rates fall quite a bit in September and then start to rise again. Lenders can lower their rates well above current levels, resulting in greater savings on your part.

Plus, if you research getting a home loan, you may be able to get an even lower interest rate on your mortgage – especially if you have good credit.

You may not think of November and December as great months to buy a home. But you may find that buying before the end of the year causes you to pay less. So you’ll start the new year having reached a major financial milestone.