Considering Buying a Home This Year? Don’t Wait!
So you’re contemplating moving this winter. Maybe you’re a first-time homebuyer, or maybe you’re just looking for a change. Maybe you’re starting a family, or getting that dog you’ve always wanted and having a backyard has suddenly become a priority.
Whatever the reason for your search, the fact that it’s winter shouldn’t deter you from forging ahead into the market. Contrary to popular belief, there are actually many advantages to buying a home in the winter months. Read on to learn just a few, before making this critical decision for you and your family.
Test the Weatherproofing
Most people’s aversion to open-house hopping in winter has to do with inclement weather, but the cold, rain, and snow can actually show you the mettle of the homes that you tour. Is the heating working properly? Are there any leaky spots in the roof? The true measure of a house comes in its sturdiness to withstand tests from the elements. The bite of winter weather can help reveal your prospective home’s strengths and weaknesses.
Winter 2019-2020 Is a Buyer’s Market
With mortgage rates lower than they’ve been in several years and the rate of rising home prices slowing, it’s a great time to invest in property and start building equity. As of Fall 2019, FreddieMac has mortgage rates down by a full percentage point – from 4.5% to 3.49% – on a 30-year fixed loan. The accelerated pace of rising home prices, impelled by the market’s recovery in 2012, has begun to slow.
These two factors mean you may be able to afford more than you thought you could a year or two ago.
Winter Lowers Competition
Since so many people look for homes in spring and summer, looking in winter will render you less likely to end up in a seven-way beauty contest for the home you’re just dying to have. Even though fewer homes may be on the market, you’ll have more leverage when vying for the one you choose, and sellers are more apt to strike a deal when other buyers aren’t there to spark a bidding war.
This may be especially true if the house has been on the market since the spring or summer, and its asking price has duly lowered. Additionally, with fewer folks putting down offers, mortgage brokers will be less swamped with applications, and you may be able to close sale on your home more quickly than in other seasons.
One mortgage banker estimates that business slows by as much as 25 to 30% during the holiday season. This slowdown can prove beneficial because competition for movers in winter is lower, too, so you can move quickly and at cheaper rates because moving companies’ schedules are less crowded.
Get That End-of-Year Tax Break From Buying Your Home
If you’re ready to up stakes soon, moving in December can be a great strategy tax-wise. If you close quickly on a home this month, you can get a last-minute write-off on your 2019 taxes, possibly magnifying your return in April 2020.
