Apple picking, Halloween, pumpkin spice lattes and home-buying are, in fact, all things that go very well together, according to a new report from ATTOM® Data Solutions, which found that October is the best month to get a good deal on a home as buyers paid significantly less than those who bought in the summer.
Analyzing data over a seven-year period from 2013 to 2020, the report found that in October, people paid an average of 2.9% over the median automated appraisal price of a given home. That pales in comparison to May, the most expensive month, when buyers paid an average of 11.5% over the computer-determined appraisal.
Generally, data supported the conventional wisdom, showing that colder months are better for buyers—with December and November averaging under 4% higher purchase price compared to the computer-generated appraisal—with spring and summer the ideal time for sellers, as April through July all topped 7% over valuation.
The takeaway:
Total home sales followed the same pattern as price, according to the report, with colder months seeing more than a 30% drop compared to summer months. February had the least number of sales, averaging below 2 million, with July seeing the most sales at just over 3.3 million. Sales began to decline in September before rebounding in March, the report showed.
The report also broke down data by region, as well as individual days. Unsurprisingly, colder climates saw a much larger seasonal drop in price, as Delaware, Tennessee, New Jersey, Maryland and Ohio saw homes sell for between 4.8% and 7.9% less than the computer valuation model during the winter.
Nationally, the best day to buy a home is Dec. 5, according to the report—a date where buyers only paid 1.6% above the appraisal. The most expensive days are May 23 and 27, both of which saw buyers pay 17.4% more than the home’s value.
Jesse Williams is RISMedia’s associate online editor. Email him your real estate news ideas to jwilliams@rismedia.com.
