The day after Thanksgiving (or even the night of) consumers will flock to the stores in hunt of the best bargains of the year. But for those looking for a great deal on a new home, the real estate Black Friday has come and gone. According to a report released last week by Trulia, the biggest price cuts in the housing market actually happen in at the end of the summer as sellers cut prices in order to close a deal before the winter months.
Those looking to buy a home will find the sharpest discounts during August when 13.9 percent of all listings see a price cut. Buyers are least likely to see prices decrease in December.
Nonetheless, some experts suggest that end-of-year home buying may have advantages. A lack of competition for available homes can result in a higher likelihood of an offer being accepted. For sellers, the slowdown may make them more inclined to negotiate on the price or complete repairs.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.