The holiday season is a good time for gift-giving, entertaining and general merriment. But what about buying a home? The answer is YES! Why? Because those who do choose to sell at this time of year are often under pressure and highly motivated to cut a deal. That’s why the year-end might be a smart time to buy. Determined house-hunters can take advantage of sellers’ urgency.
Here are seven reasons why you might want to start your house hunt immediately:
1. Less Competition
While there may be fewer homes available, there are also fewer homebuyers looking – and that equals less competition on buying the home of your dreams.
2. Motivated Sellers
It’s likely that people who are selling their homes over the holidays are highly motivated to do so. Otherwise why wouldn’t they wait until after the busy season? Perhaps they must relocate for a new job, or their home has been on the market for a long time and they need the money from a sale before the year is out. Whatever their reason, the end result is good for those who want to buy.
3. Lower Prices
Home prices have been rising rapidly, in part because of an overall shortage of homes. However, December historically has lower home prices than any other month, due in part to the reasons listed above. There’s no guarantee that this year will continue that trend, but it’s worth checking the prices within your local market.
4. Faster Closings
Think about it, everyone involved in a holiday real estate transaction wants to complete the transaction before the year ends. Buyers want to settle in their new homes, lenders want to include the loan on the current year’s books, and real estate agents and brokers want their commissions listed on the current year’s income. That creates motivation to make closing as smooth as possible.
5. Better Interest Rates
Rates dipped slightly in the short week leading up to the Thanksgiving holiday. The 10-year Treasury yield fell roughly 4 basis points, while the 30-year mortgage rate dropped 3 basis points to 3.92 percent. That means buying now when mortgage rates continue to remain low can save you money.
6. Motivated Agents
Real estate agents are dealing with fewer clients at this time of year which means they have more time to devote to you. Plus, with fewer sales commissions on the books, they may be a bit more motivated to bring your purchase to completion.
7. Related Seasonal Sales
If you need furniture or other items for your new home, you’re in luck. There are plenty of seasonal clearance sales, especially after Christmas. Just but be careful not to spend yourself into unrecoverable debt. That would put you on Santa’s naughty list!
If you’d like to learn more about the getting the best VA mortgage to purchase a new home over the holidays or any time of year, please contact Mister VA at (805) 389-0505. We help active service members and veterans get the VA benefits they’ve earned. Mister VA provides expert services that help you get approved for a VA home loan through the excellent benefits of a VA or CalVet loan. We assist you with the DD-214 and VA Form 26-1880 Certificate of Eligibility.