It’s no surprise that the real estate market tends to slip a bit in the weeks between Thanksgiving and New Years. People are shopping for the holidays and have put their home searches on the back burner. What most people don’t realize is this, is in fact, the best time to buy a house!
With the stresses of the holiday season, it’s a rarity to find many new listings. The market becomes rather stagnant and both buyers and sellers are in the holiday mindset. If you’re looking to buy a home, doing so during these last few days of the holiday season might just be your golden ticket.
As stated in a new Forbes article, home prices rose 6% in 2015, likely due to the lack of inventory on the market. Typically, home prices rise an average of 3% to 5% per year. In a graph depicted in Lawrence Yun’s article, you see a telling dip in median home prices during the winter months each year. This consistent dip is a buyers most fruitful opportunity.
Another contributing factor to this annual slope, aside from the holiday season, is home buyers and their families. It’s far from usual for a family to take their children out of their school district in the middle of the year. Home buyers with large families, who even might be looking to expand their family, are often the ones selling the smaller, lower cost homes. They’re also likely to be the most interested buyers for a larger home, so as they’re preoccupied with the season that leaves the market with fewer listings and fewer prospective buyers.
Between the holiday season and the school year, there are fewer buyers shopping over the holiday season for a new home. In turn, this causes for houses to stay on the market for a longer period of time, which ultimately depletes home value. Whether it be desperation to get the house off the market or simply holiday cheer, buyers tend to get a better deal during this time of year.
So, if you’ve been contemplating purchasing a home over the past several weeks, now would be the best time to do so. As shown in the graph, after the new year, median home prices tend to skyrocket until July. Take advantage of the ‘low point’ we’re currently in and buy yourself a new home!