5 Reasons the Holidays Are the Best Time for Real Estate Buyers

Historically, the holidays have proven an excellent time for buyers, from reduced competition to sellers wanting to unload for tax purposes. Read on for all five reasons to purchase now.

1. Decreased competition

Have you been making the busyness excuse? Are you too busy to get pre-approved or to meet up and discuss your search with a realtor? So is everyone else! The holidays are the ultimate chosen excuse, but it turns out that soup kitchens and other nonprofits need you more the rest of the year than right now. Family obligations? These are trickier, but if you wish to get out of these obligations, buying a home is a perfect excuse. Why not beat your competition at the busyness game?

What's more, agents and sellers are holding fewer public open houses, citing holiday travel as the primary reason. So it’s a perfect time to grab your agent for some personal off-hours touring. Also, while much of your buyer competition is traveling and unavailable, your most important resources remain available: banks and mortgage lenders, title and escrow companies, and movers.

2. Motivated sellers seeking end-year resolution

While conventional wisdom tells sellers to wait until spring, some may be selling off a family home in probate or relocating with children and taking advantage of the winter break. Others may need to finish out a tax-deferred exchange, wrap up a divorce, or have other tax- and finance-related reasons to sell that often result in easier negotiations and concessions.

3. Historic data is in your favor

Historically, the largest price cuts have been in December, the month with the longest number of days on market at closing followed by January, the month with the lowest total price. 

4. Rates are pretty stable

Also historically, less happens in the banking world during the holidays. Fewer mortgage applications may have some influence on rates, while global and federal economic indicators rule the rest. Overall, there tends to be less activity in the world of trading and volatility.

5. Tax benefits

It's always best to consult a tax professional when it comes to tax-related benefits, but closing on real estate in one tax year instead of another can have implications for some filers, both homeowners and investors. You might want to make the most eligible deductions this year, should the right property come along.

Happy house hunting and have a lovely holiday season!