The Benefit of Home Buying in Winter
You know winter is coming, and you probably just want to snuggle up in front of a crackling fireplace or under an electric blanket to try and get through the worst of it, depending on where you live.
However, if you are feeling motivated to make some major changes in your life, there are some industries in their off-peak seasons that are worth taking a close look at. Right at the top of that list is the housing market.
There are a number of very important benefits to home hunting during the colder months. In fact, you could snap up the deal of a lifetime on your dream home, if you play your cards right.
Why Is Home Buying Better in Winter?
There is a very good chance that home buying in winter will result in finding properties that are a lot cheaper. Realtors and loan companies know it’s hugely beneficial for home hunters to buy during the winter. A seasonal low is usually reflected on the price tag for properties on the market during this time of year.
Once summer is over, sales begin to slow down. That means house prices will likely drop. Statistics for October 2018, for example, showed 30 percent of listed homes seeing a reduced price tag. That represented the highest percentage in the past 8 years for that statistic.
There are fewer buyers in winter, which has much to do with the expectation there aren’t many homes on the market. A smaller inventory in summer results in higher housing prices. However, that doesn’t take into account that the number of houses from September to October only decreased from 1.88 to 1.85 million. That is also a significant increase from the previous year when housing inventory peaked at 1.80 million in October.
If you are currently renting, it is also worth noting that rent has experienced a slight increase. This increase is likely to continue, which is not good news for renters. You may want to think about giving yourself a late Christmas gift in the shape of a discounted home. December 26 is regarded as the best date to look for discounted properties on the market. There is also a window of opportunity to strike a great deal on December 29.
Even if the prime dates have passed, buying in the winter gives you the benefit of facing less competition for the properties you are viewing. It seems nobody wants to brave the winter weather in order to catch sellers when they are most likely to agree to a lower price tag on properties that are worth much more.
Many millennials have yet to get a foot on that first rung of the property ladder. If you have been dreaming of living in a nice home, in a nice neighborhood, winter is the time to set the wheels in motion. When location is important, getting an affordable mortgage for a property that is a worthy investment is more achievable in winter.
Summary of Winter Home Buying Benefits
Let’s take a rundown of all the reasons that it is better to go home buying in winter:
- Seasonal Motivation – There is very little activity in the winter months, which gives everybody who is involved in a sale more motivation to get the deal done. The buyer, seller, and realtor work together to negotiate a deal that benefits all.
- Reduced Competition – The perception of less inventory, the impression homebuying in winter is pointless, can work in your favor. Okay, so there are somewhat fewer houses to choose from, but there are also fewer potential buyers on the market. The likelihood of getting into a bidding war for the property you want is significantly reduced in winter.
- Faster Closing – This is the off-peak season, which means the industries involved in closing are not run ragged trying to process mortgages and everything else that comes with closing a sale. There is a very good chance you will close on a home in much less time than the usual ten days it takes in peak season.
- Rate Dips – From December to January, rates are expected to see a drop. Mortgage rates are currently experiencing a historic low, so it is important to speak to a loan officer and get moving on your dream property while the gettin’ is good.
- Lazy Homebuying – Nobody wants to feel rushed when searching for a home in which to settle down. Coming up to January is not a busy time for house hunters, which means you can take your time viewing potential properties. It helps to work with a professional realtor who knows the market and can guide you on when and how to conduct your search.
Galaxy Lending Group
If you need a pre-approval letter to help you budget for the right property, Galaxy Lending Group is here to help. We provide an online application feature that gives you an accurate figure based on the information you provide. Call Galaxy Lending Group today if you have any questions about securing a homebuying loan.