New Year, New Home!
Should you gift your family a home for the New Year? This may be the best option for you.
The holidays can be expensive and busy enough without purchasing a new house and setting up a mortgage.
Cue the New Year.
January is one of the best times of the year to buy a new home. Competition is still low from the Christmas-time lull. A study conducted by one of our favorite finance blogs, NerdWallet, concluded that home prices in January tend to be the lowest observed all year.
For the last five months, interest rates have sat at around 4%. That’s low.
With rates hovering at around 4%, deciding to buy a new home for your loved ones could be a sound decision. Buying a home in the New Year season could be the best decision.
Here’s what we say:
The slow movement of the market in January may ensure a swift move for your family. Even better, you will settle in time to have the rest of the year (hint: Summer!) ahead of you.
Here’s the even better news: a slow market can be an advantage for a homebuyer.
Realtors have less clients and less potential commission rolling in during the holidays. That means they will work harder to bring your buy to completion.
On the seller’s end, a slow market can be the time that they are most willing to negotiate prices down. Some of them may have had their homes on the market well before the holidays began. They are going to want to get out of their old houses and get going before the year gets into full swing. With less competition in a slower market, you have the leverage to get a better deal.
Take advantage of these situations. Give your family the gift of a more affordable home.
Moving takes time, energy, and money: resources that run low during, and after, the holiday season. But a busier January of buying and moving into a new home can be a worthwhile sacrifice for the benefit of lower prices, competition, and more attention to your sale.
Just remember, sellers want to move out and realtors want the commission in a slow market. More importantly, prices will likely won’t go anywhere but up after January.
But the best outcome of all is when you can give the keys of a new home to your loved ones in a box with a little bow to kick off 2018.
