Should I Buy A House During The Holidays?

Q: I’m in the market for a new home and wondering if I should push off my search until after the holidays. Is it a good idea to buy a new home during the holiday season?

A: While spring and summer tend to see the highest volume of home sales, it doesn’t mean they’re the only time to buy a house. In fact, buying a home in winter can be a great time to buy a new home.

Let’s take a closer look at some of the myths and lesser-known facts about timing the purchase of a home and why you should consider buying a home during the holidays.

The myth about buying in the spring 

Contrary to popular belief, springtime can be the worst season to purchase a home. While the longer daylight hours make it easier to check out the exterior, shopping for a new house during the hottest real estate season can mean facing all kinds of drawbacks and difficulties.

First, and most importantly, sellers tend to mark up their prices when they see heightened demand for their homes. Also, the flooded market can lead to expensive bidding wars with buyers who are also interested in the same property. If your search is successful and you find a new home during the spring, the closing process may drag out much longer than necessary. Title companies, inspectors and movers may not be able to service you in a timely manner during their busiest season of the year.

Why the holiday season is usually a better time to buy

Shopping for a home during the winter, and especially during the holidays, offers the following advantages:

1. Homes are priced to sell

Most of the houses you’ll find on the market during the late fall and early winter will be holdovers from the spring and summer season. At this point, homeowners may be desperate to sell and get their property off their hands. Alternatively, the houses may have just been put on the market because of the owner’s sudden and urgent need to relocate due to unforeseen factors. In either case, the owner is looking to sell quickly and will likely be more willing to compromise on their original asking price than homeowners selling in the spring and summer.

Home prices and mortgage rates are also falling at this time. According to The Wall Street Journal, home prices recently fell to a 13-year low. During this holiday season, mortgage rates are also down at Scott Credit Union. With lower mortgage rates and home prices, this could be a great time to purchase your dream house.

2. Holiday spirit makes people more agreeable

People tend to be in a more generous frame of mind around the holidays. Let this factor work in your favor by shopping for a home during the holiday season. You can walk away with a dream home at a dream price. You may even be able to negotiate some extras, like furniture or a fresh coat of paint, into the selling price.

3. Fewer buyers on the market

With more people looking to relocate during the spring and summer months, you’ll have less competition when house-hunting around Christmas time. This will give you an edge in bidding wars and make it easier for you to negotiate on the asking price on a home.

4. Professionals of the field are more available

December is usually the slowest month of the year for home sales. This can work to your advantage if you choose to buy a home around the holidays. Your real estate agent will likely have plenty of time to show you around since fewer people are looking to buy during this season. The various professionals you’ll need to hire during the home-buying process, such as an attorney, home inspector, underwriter and mover, will likely be able to service you promptly as well.

Before you go house hunting 

While buying a house during the holidays can be a great idea, keep these factors in mind before you give your agent a call:

• Daylight hours are short during the winter, giving you a small window of opportunity to search.
• You won’t be able to see a home’s property in its full glory during the winter months.
• Some sellers may not be too keen on throwing their homes open to viewers during the holidays.
• Unexpected inclement weather may delay some parts of the home-buying process, like the inspection or even the closing.
• You’ll have fewer homes to choose from when house-hunting during the winter, as a cooler real estate market means slimmer pickings.

Shopping for a new home during the holidays may not be conventional, but it can mean finding your home-sweet-home quickly, easily and for a far better price.

If you’re in the market for a new home, be sure to stop by Scott Credit Union to ask about our home loan options. With falling mortgage rates at Scott Credit Union, we’ll help you move into your dream home with great rates. Visit our website, stop by your local branch, or call (800) 888-4728 for more information.