Ready to buy a home, but worried that it may be a bad time because of the holidays? December and around the holidays can actually be a great time to buy! Find out why this can be the best time of year to make a purchase by reading below:
6 THINGS TO KEEP IN MIND IF YOU’RE THINKING ABOUT BUYING DURING THE HOLIDAYS:
- Less Competition – The same reasons that are going through your head about why it may NOT be a good time to buy, are going through many other home buyer’s heads when buying a home around the holidays. You are extra busy, it’s a hassle, and there’s already too much to do when buying a home and the thought of moving during the holidays. Those reasons keep a lot of buyers out of the market this time of year when buying a home, which means more choices and less competition for you!
- Motivated Sellers – People selling a home don’t enjoy moving over the holidays any more than anyone else. It’s likely that people selling their homes at this time of year are very motivated. They may be facing a change of job or a need to sell and get money before the end of the year when selling their home. If you combine motivated sellers with less competition, you have great leverage to get a great deal on buying a home!
- Lower Prices –When buying a home prices have been rising, partly because of a shortage of homes on the market. However when buying a home, historically December has lower home prices than any other month, because of all the reasons we have already gone over. There’s no guarantee that this will be the case this year but keep this possibility in mind when buying a home!
- Faster closings – When buying a home in December and around the holidays,everyone involved in the real estate transaction is motivated to get the deal closed quickly. Buyers and sellers want to settle into their new homes. Lenders want to include the loan on the current year’s books. REALTORS® and Brokers want the commission on this year’s income. All of these motivated parties will work hard to make the closing as smooth and quick as possible!
- Motivated Agents – Lower activity in the housing market means real estate agents are dealing with fewer clients this time of year! They have more time to devote to you when you are buying a home!
- Related Seasonal Sales – Need new furniture when buying a home? It’s usually on sale this time of year.
Why would you ever buy a house in December?
Fewer buyers mean buying a home in December can have less competition.
When buying a home, the lower number of homes for sale and the fact that many professionals involved in the transaction may have holiday vacations and travel plans can present some disadvantages, but they also create a lower-key buying experience. Yes, there are fewer sellers, but there are also fewer buyers. That means you are much less likely to get caught in a bidding war over a house or lose houses to better offers. The sellers who keep their house listed during Christmas, are motivated sellers. They want to sell their house now, for various reasons.
Get a better mortgage deal when buying a home?
The lower number of buyers and sellers further translates to a mortgage slow down when buying a home. Mortgage brokers feel the decrease in sales during the holidays. December has notoriously been the lean season for mortgage brokers. This can work to your advantage when buying a home.
Save money?
All those other issues aside, buying a home in December can just straight up save you money. The prices of homes listed for sale tend to be higher in summer and lower in winter. That can translate to a savings of five to seven percent.
Fewer homebuying transactions occur during the holidays when buying a home, and some salespeople get bonuses for hitting annual goals.
Looking for some end-of-year tax deductions before buying a home? If you close your home purchase before the end of the year, you can deduct certain costs from your 2020 tax return. They include:
- Mortgage interest
- Loan points
- Property taxes
“Before buying a home, a lot of sellers these days are very aware than come January and February when buying a home there is going to be an abundance of stock coming on the market and what tends to happen during that time is buyers tend to steer away from the older stock. They lean more towards the new stock because they think ‘If a property has been on the market for six weeks there’s a reason no one’s buying it — so I shouldn’t either,” he said.
“When buying a home, you’ve got a lot of small business owners who want to settle before particular dates for tax reasons. Of course, the agent’s job is, by law, to get the best price they can for their client but at the same time he knows the whole story with the vendor — we don’t. He knows that the vendor needs to sell before a certain date,” he said.
As you can see when buying a home, many of the reasons to continue searching for a home during the Christmas season are dependent on the buyer’s needs and motivation. If circumstances allow for some flexibility and perseverance, making an offer and purchasing a home at this time of year has its benefits. Buyers just need to be careful not to rush through the process to meet that year-end deadline. While certain advantages can be gained by closing by year-end, this is essentially a 15 to 30-year commitment.
Find Tenants Quickly
If you’re buying a home for investment, the week around Christmas can be a fantastic choice for any real estate investor. January is a busy time, as many people are moving for jobs or changing housing between university semesters. Securing a high-quality property by Christmas means you’ll be ready for tenants when the January rush rolls around.
If you intend to do maintenance work on the property or make several upgrades when buying a home, this also gives you ample time before the upcoming spring rush. You’ll afford four months of maintenance work, and your investment property will be ready for tenants just in time. It’s a good time to buy a home if you intend to rent it out in the spring. If you’re buying a rental property, shopping around the holidays can be a great choice.
