The fall market is still in full swing but many househunters are starting to feel that perhaps they should wait until spring to purchase. The number of homes on the market is shrinking. The early, dark evenings make looking at homes more difficult. The looming holidays cause many to pack it in to wait until the tulips start to bloom. However, waiting until spring could cost buyers real money. Here’s why.
MORE COMPETITION IN THE SPRING
Interest rates always go up in the spring. This year, it is likely is they could go up quite a bit by New Year’s. While yes, the housing inventory is greater in the spring, there are also many more buyers looking in the spring market. More buyers translates into multiple offers on properties and escalating prices.
Spring is also the time of the year that sellers who are trying to get the highest price list their homes for sale.
By continuing the search through the fall and the winter, buyers will find sellers who are truly motivated to sell, maybe due to a pending relocation or life change. These sellers are often more flexible on their bottom line and open to negotiations (such as settlement date, contingencies, etc).
MORE ATTENTION IN THE FALL
Buyers may also find they get more attention in the fall months. The market is slower; sellers and their agents are often more willing to work with buyers. Response time from everyone in the process, from lenders to home inspectors, tends to be much quicker during the fall market.
Lastly, keep in mind that if you close on a new home in December, you can deduct your property tax and mortgage interest for your whole year’s gross income. If you prepay some interest on your mortgage prior to your first payment, and close before December 31, that interest can also be deducted.
Want to talk through the process? Just reach out. We are always happy to chat about your options and what makes the most sense for you.
For more articles like this one, sign up for our weekly blog roundup.