The Holiday Season and the Real Estate Market
According to the National Association of Realtors, existing home sales rose strongly in the month of September however the upcoming winter and holiday months are typically a slower time of year for the real estate industry.
This can work to the buyer’s advantage.
Fewer real estate transactions can translate to less competition, more motivated sellers, quicker mortgage underwriting turn around times and several other advantages.
I have outlined why the holiday season could be the ideal time to buy a home.
1. Less Buyer Competition
The winter months come with less than favorable weather conditions for would-be home buyers. This means fewer people are looking to purchase homes and there is less buyer competition.
This may minimizes multiple offer situations and bidding wars as we so often see in the Colorado real estate marketplace.
Lower demand could equate to more negotiating power for buyers.
2. Serious Home Sellers
Most are busy this time of year with family, friends and festivities and not inclined to trying to sell their home. As a result, holiday home sellers are serious. They may be more willing to negotiate. Sellers usually show additional flexibility in areas such as price and other facets of the transaction.
Sellers may also make concessions to get their home sold. They may leave items behind and that riding lawn mower in the garage could be yours.
Be cautious, though, when home buying in the winter.
Sellers will “stage” their homes to sell and during the holiday season, it’s very easy to let your emotions take over. Christmas trees, Christmas presents and the joy that comes along with the season - it's east to imagine your family opening presents in a tastefully decorated home.
Studies show that staged homes sell 73% faster. Make sure you’re buying the home and not the feeling.
3. Faster Mortgage Loan Origination
Traditionally, the holiday months tend to be slower for mortgage lenders. While slower business is not so favorable for the lender, it can be great for the home buyer.
As a result of fewer loans loans in the "pipeline" this could translate to quicker underwriting turn around times. A quick, efficient loan origination process and closing date could help you negotiate a better deal on the home you are buying.
4. Tax Advantages For New Homeowners
One of the biggest reasons that many buyers make the leap from renting to buying is for the tax benefits. If you wait until January to buy, you will not realize the tax advantages until the following year.
Closing by December 31th can mean tax benefits for home buyers, like deductions for mortgage interest, property taxes and perhaps some closing costs.
Always be sure to consult with a tax adviser for professional advise before filing. The mortgage associated tax deductions can be significant for homeowners, especially in the beginning months of your mortgage.
5. Greater Home Affordability
Home prices are typically at 12 month lows in December. This translates to lower home prices whereby allowing buyers to purchase more home for less money. As mentioned, holiday home sellers are generally more motivated about getting their homes sold.
Sellers typically know that the winter months are not necessarily ideal for selling their home. As such, there is usually a specific reason that, instead of doing some holiday shopping or attending a holiday party, they are trying to sell their house.
Whatever the reason may be, the timing could be perfect for making an offer on your dream home.
The holidays are upon us and for home buyers looking for additional holiday bargains, now may be the perfect time to get your dream home at a discount.
Call me today for an excellent real estate agent recommendation at 303.668.3350, get the insider track on mortgage interest rates, or apply now!
Nations Reliable Lending, LLC
Colorado's Mortgage Expert
NMLS: 253799 / NRL NMLS: 181407
Regulated by the Division of Real Estate
Scott Synovic is a top performing mortgage loan originator providing superior levels of service and satisfaction to clients and business partners in Colorado - www.scottsynovic.com NMLS #253799 Fairway Independent Mortgage Corporation #2289