7 Reasons Why this Holiday Season is a Great Time to Buy
In most part of the country home sales typically follow a seasonal pattern. They tend to be the strongest in the spring and summer and at their weakest during winter and the holidays. Here in California that pattern may not be as pronounced because of our year around sunny weather but there are other reasons besides weather that deter buyers from being active. If this is really the case, doesn’t it make sense as a buyer that the holidays could be when you will find the best deal on a home.
This isn’t written for people who weren’t already considering buying a home. This is for you buyers out there who do want to buy a home anyway but are trying to decide when the best time to buy is. If you are one of those buyers, you should really consider starting you house hunting right now. Below are 7 reasons why this holiday season is a very attractive time to buy:
We are all busy during the Holidays. The truth is that most people don’t have the desire or time to shop for a house because they are too busy shopping for gifts, going to parties or spending time with friends and family. This lack of demand puts pressure on the homes that are for sale and tends to push prices down.
Many sellers who failed to make a deal before the holidays will be very motivated now, especially if their houses have been on the market for several weeks. They will be eager to sell and to avoid scheduling their holiday plans around viewings by prospective purchasers, so they are likely to look at any reasonable offer favorably and to negotiate on price. They may also be open to requests for extras like appliances and window coverings, and to giving you the closing date you want.
With fewer active house-hunters out there, you are unlikely to end up in a bidding war that would drive up the price for the house you want or put it out of your financial reach. Less competition also means less stress for you during the bidding process.
Favorable Mortgage Terms
Fewer home sales translate into less demand for mortgage money during the holiday season. Lenders may be willing to shave a few basis points off the interest rate they offer you or to forgo some of their fees in order to get your business. Make sure you shop around to get the best deal available.
If you close on or before December 31, you are likely to be eligible to deduct the interest component of your first monthly mortgage payment from your taxable income for that year. You may also be able to deduct any money you pay for points to reduce the interest rate on your loan. Consult a tax advisor to see how the mortgage interest deduction applies in your situation.
Bottom of the Market
In addition to all of the above reasons to buy a home during the holidays, real estate is basically already on sale. Real estate prices have dropped significantly across the nation since the height of the market in 2006 and home affordability is way up.
Historically Low Interest Rates
Purchase money is cheap. Interest rates have been and remain and historic lows. This is a financing situation unlike anything since the 1970s. This makes purchasing a home even more affordable. It is hard to imagine these rates can go much lower and when they do start to rise, housing affordability will drop accordingly.