Is October a Good Time to Buy a House?

Should October be the month you move toward owning your own home?

October is upon us, which means it's time for hayrides, pumpkin spice lattes, and Halloween decorations. But is it a good time to buy a home?

It all depends on your priorities and financial situation.

Here's what you need to know to help you decide if you should consider looking to make an offer on a property this month.

Why October could be an ideal time to purchase a home

This month could be an ideal time to purchase a home for a few key reasons.

First and foremost, there tends to be less demand for houses during the fall months. Most people with kids want to be settled before school starts and aren't looking for properties. Sellers know this, and they may be much more desperate to unload their homes if they have to move now. You're likely to encounter lower list prices because of this and sellers will be much more willing to negotiate -- especially if they really want to move before the arrival of the holiday season.

You may also be able to get a more affordable mortgage now than you could in a few months. Mortgage rates are much higher now than they have been in recent years, so you are not going to get a rock bottom loan rate. But, rates are likely to continue going even higher. The Federal Reserve may raise interest rates again to help continue to curb inflation, and this could push rates to even more elevated levels when this occurs.

So, if you want to buy soon, October may be your best chance to act before rates continue to climb and while there's still a reasonable amount of inventory available. While there will be fewer houses to choose from now than in the summer because most people don't list in the fall, chances are good that inventory will be higher than winter, when a real slowdown generally happens as people don't want to relocate during the holidays or during bad weather.

Why you may want to wait to buy

Although there are some big benefits to buying a home in October, there could be some downsides as well.

First, as mentioned above, there won't be as many houses for sale as there would be if you purchased during summer simply because the warmest season when school is out is the most popular time for people to list their homes. Sellers typically also won't be as desperate to unload their properties in the fall as they are in the winter, so you could possibly see lower prices (but even lower inventory) if you delayed a few months.

Interest rates are also a lot higher than they've been for a long time, so your mortgage is going to cost more than you might expect. You need to make sure you are in a good financial position before you make your purchase and that your house is affordable. If you don't have a reasonable down payment, a good credit score, and plenty of money to afford your mortgage payments, then you should absolutely wait to buy until you're more financially prepared for homeownership