Everyone is quite familiar with the spring home buying season and the summer frenzy that follows it. This year has certainly been no different as we have seen record setting home buying activity. With this said, do the fall months equal falling home prices? Although the demand for housing is still strong across Florida, the cooler options may offer some benefits. If you are a home buyer, you may want to read the latest data.
According to a new report from ATTOM Data Solutions, the month of October is the best time of the year to get a good deal on a home purchase. This report analyzed data over a 7-year period from 2013 to 2020. The results indicated that during the month of October, buyers typically paid an average of 2.9% over the median automated appraisal price of a given home. While this may not sound like a good deal on a home purchase, these prices paled in comparison to the month of May which was the most expensive month. During the month of May, buyers paid an average of 11.5% over the computer-determined appraisal.
Generally speaking, the colder months tend to be advantageous for home buyers. A large reason for this is decreased competition for home purchases. As a larger percentage of Americans focus their time on holiday travel & spending time with family, there is typically a lower demand for home buying. For example, the months of November and December averaged under a 4% higher purchase price compared to computer-generated appraisals. As for the spring and summer, the purchase prices averaged over 7% above valuations.
Similar to home price trends, total home sales also followed a similar pattern. In fact, the colder months saw a 30% drop in sales activity as compared to the warmer months. Averaging below 2 million, the month of February saw the lowest number of home sales. The month of July led the way in home sales at just over 3.3 million. As for the best day of the year to buy a home, that would be December 5th. On this day, buyers only paid 1.6% above the appraisal. As for the most expensive days of the year to buy a home, those are May 23rd and 27th. Both of these days saw buyers pay 17.4% more than the home’s value.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!