12.02.14 by Jeff Johnson
In the market for a new home? Here are four reasons for home buying during the holidays, and to add real estate shopping to your December to-do list.
Did you know that, historically, home prices are lower in December than in any other month? And as you can imagine, competition is minimal this time of year.
Low mortgage rates
What’s driving affordability? Low mortgage rates. Currently hovering in the 4 percent range, rates are projected to edge up to 5 percent by the end of 2015, according to Zillow Chief Economist, Stan Humphries. To put this in perspective, did you know that if rates go up by just one percentage point, your purchasing power is reduced by a whopping 11 percent?
If sellers are listing their home for sale this time of year, it likely means they’re serious about moving. Regardless of why that is – perhaps they’ve recently gotten divorced, have to relocate for a new job, or are under some other personal pressure – this puts you, the buyer, in a much better position to negotiate and ultimately cut a deal.
At the end of the year, everyone is looking for ways to lower their tax bill. And closing on your new home before Dec. 31st is one way to get some breaks. You can deduct home purchase costs including mortgage interest, property taxes and points — while you build equity and realize a significant tax savings.