The time to buy is soon! A recently released report by real estate database firm, ATTOM Data Solutions, analyzes nearly a decade of historical data to pinpoint the best time of year to buy a home, identifying the most affordable day of the year for homebuyers.
Homebuyers will almost always pay a certain premium compared to the market value of a home. To determine when that premium is lowest, ATTOM looked at data from 2013-2020. Comparing the median sales price to the median AVM, the report determined that October was the best time to buy a home, with an average premium of 2.9%.
But, the time has not passed completely. The report shows that the second best month is December, with an average premium of 3.4%, followed by November and January both at 3.9%. The best day of the year happens to be December 5th, where the data shows that buyers typically paid only a 1.5% premium.
Such information is particularly timely, given the fact that homes have become less and less affordable over the last few years, especially since the onset of COVID. Another report by ATTOM shows that in the 3rd quarter of 2021, housing affordability dropped significantly below the historical average in the City of St. Loius, Franklin County, and St. Charles County.
In these and other parts of the St. Louis metropolitan statistical area the increase in the median home price has dramatically outpaced wage growth year over year. In September, the median sales price on an existing home was $265,000, up 8.2% from the previous year. To put that in further perspective, in September 2019, the median sales price in St. Louis was only $205,000.