Why is the holiday season considered the best time for buying a home?
The holiday season can be an extremely confusing, ridiculously busy, scary and happy time in the real estate industry. A lot of it depends on how familiar individuals and their bosses are with seasonal housing cycles and how well all parties have planned ahead. However, one thing continues to be true every December; it’s a great time for buying a home.
According to a new report on the Zillow blog, there are a variety of reasons that the holiday season rocks for home buyers. Let’s look at a few of them:
Less Competition
This time of the year traditionally sees less competition. The bulk of buying activity goes on in the summer months. However, luxury home sales have been above average since last December. As a result, most Southern California and San Diego home buyers have been begging for a little breathing room. Recent stats suggest this window is temporarily open right now, and less competition could also mean better bargains.
Lower Prices
According to Realtor data, the housing market typically sees a sizable dip in home asking prices after the summer rush. This trend can continue into December, as sellers and their agents will be more inclined to get nervous and negotiate a quick close. While home prices may still be on the rise, buyers may find this to be the best time to negotiate terms. Considering the 12.7% pace of home price growth on a national level, those buying houses now would save tens of thousands of dollars.
Serious Home Sellers
Seasonal home maintenance expenses can serve as additional motivation for sellers to move a property. Additionally, homeowners listing now are often more serious about getting a sale negotiated and closed. People usually don’t put their houses on the market to test buyer reaction. Sellers have too many other considerations around this time of the year. For whatever reason, those listing now are typically pretty serious about making a deal happen. This situation creates the perfect storm for prospective buyers.
Faster Loan Approvals
Faster loan approvals are typical for this time of the year. For whatever reason, many overlook this aspect of the holiday season. There are certainly plenty of challenges while closing a transaction during the last week of the year, but fewer transactions will receive faster approvals. This can also apply to everything from home inspections to appraisals, as those parties are often motivated to close out the year strong. Even better; Bank of America, Wells Fargo and TD Bank recently appeared in a new CNN Money report for going back to 5% down mortgages, while the USDA can offer up to 100% financing in some areas.
