Memorial Day is known to be a great time to shop, but you might want to think even bigger this year than usual. Just how big are we talking? Cars and houses big.
As part of this week’s Family First, we’re taking a look at some of the more substantial opportunities consumers can find in the current market — and why right now might be the time to pull the trigger on a big-ticket purchase.
Time to hit the road
Major holidays always mean sales at car dealerships, but this Memorial Day Weekend is a standout even in that department.
According to Edmunds, shoppers can expect blockbuster bargains — better than prior years — as auto dealers hope to move inventory that’s been sitting on their lots for longer than usual. The biggest savings will likely come from SUV models and trucks, where there is even more significant leftover inventory than in other classes.
April saw the industry endure its third month in a row where new vehicle inventory was more than 4 million units, while the average number of days a new car spends on the lot before being purchased was up 6% from the year before, hitting 75 days.
“Car shoppers can usually count on decent discounts over the Memorial Day holiday, but this year we’re anticipating some blockbuster bargains, including deals on SUVs and trucks,” says Edmunds’ Jeremy Acevedo. “If you know that you want to buy a new car this year, this holiday weekend might be the best time to jump into the ring. Automakers are going to be scaling back production this summer to address weakening demand, and given how expensive financing has become, they won’t have the resources to throw as much cash onto other summer sales events this year.”
Home is where the low rates are
Of course, you’ll need somewhere to park that new car.
Houses are also getting more affordable, thanks to this year’s lower interest rates and a slowing in the rise of home prices. According to a study by HSH.com, housing affordability in 50 major metro areas actually improved in the first quarter of 2019.
Clearly some people are noticing this trend. Mortgage applications are up 15% from last year, according to the Mortgage Bankers Association. And refinancing rates are seeing a 31% surge year-over-year.
Follow Ned Ehrbar on Twitter.