As we head into the cold weather months, one question that always comes up, “Is this the best time to buy a home”. The consensus among real estate professionals are November through January are and have always been idea times for purchasing a home. Buyers are preparing for the holidays and less likely or willing to trudge through the nasty outdoors to view open houses, this creates less competition and potential bidding wars that are so prevalent during other parts of the year. Buyers can use that to their advantage during negotiations. Winter has fewer buyers, which can also work to the serious house-hunting buyers favor.
In the winter months, sellers tend to be more motivated and willing to accept or at least consider a more manageable price than they would be during the spring and summer months, when the market includes many more buyers that need to be settled in their home before school starts. If a seller has a home on the market during these months, they mean business and need to sell in a timely fashion. Homes take longer to sell in the last few months of the year. The astute real estate professional can educate the homeowner and strongly encourage them to be more realistic with the price, which translates to money saved for the buyer. Here are a few rational reasons why this is the perfect opportunity for homebuyers to take the next step.
Mortgage Rates Are At Historical Lows: This is becoming old news and it might appear rates will stay this low forever. The fact of the matter is they will certainly rise and even a small interest rate increase can mean $1,000’s of added expenses for the buyer, over the life of the loan. The current rate for a 30 year fixed mortgage stands at 3.98%. If you’re looking for a home, the rates that are now available are too good to pass up.
Motivated Lenders: The entire housing industry slows down this time of year, including the mortgage market. With so few loans being processed, the chances of having a smooth escrow increases. It’s less likely that busy appraisers or whole house inspectors can delay the process due to other obligations or appointments.
Decline In Home Prices: Buyers control the market and sellers are very much aware that times have changed. Our local market in Davis,California has depreciated by 25% over the last five years. Other communities around Davis have had over a 50% decline in home prices. The combination of adjusted prices and those low-interest rates, make this the best winter in years to purchase a home. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my other informative blogs and easy access to view all local area homes for sale.