Conventional wisdom suggests the best time to buy a home is when everyone else is doing it: summer and spring. For what it’s worth, the warmer months are when housing activity typically peaks — it makes perfect sense when the alternatives are winter and fall, when some regions struggle to even get outside in frigid temperatures. It’s worth noting, however, that the best time to buy a home is when you are actually ready to make the large commitment.
Since buying a house will constitute the largest purchase of most people's lives, there’s no reason to put an arbitrary timetable on an impending purchase that will convolute an already intimidating process. That said, each season carries with it its own set of benefits. And since winter is nearly upon us, here are a few reasons you should consider buying your next home this winter.
1. You’ll Regret Waiting
For all intents and purposes, it’s historically expensive to purchase a home in today’s market environment. According to Zillow, the “median home value in the United States is $203,400.” While that number may not sound like much to the residents of San Diego, New York and San Francisco, it represents a 6.5 percent increase in as little as a year. What’s more, prices are expected to continue rising, to the tune of a three percent increase in the coming year. Case in point: prices are only going to inch higher as time goes on for the foreseeable future. The sooner you buy, in the upcoming winter months for example, the more likely you are to avoid impending price increases. In addition, interest rates should climb in conjunction with prices. As the economy continues to strengthen, so too will interest rates. The powers that be have already hinted at increasing the benchmark rate sooner rather than later. So if you are convinced buying is in your near future, you may not want to wait too long, as it could cost you — literally.
2. Less Competition
While this winter is shaping up to be a bit of an exception, thanks — in large part — to a carry over in demand from the summer months, winter is typically ubiquitous with an inherent slowdown in activity. Namely, one could expect the competition to drop off as the temperatures do. And while competition is still relatively high, the winter will be responsible for sidelining a lot of buyers’ efforts till the weather permits. That said, if you are able and willing, winter could net you an easier “go” at your own shopping endeavors. This winter should be easier to shop for a home that doesn’t already have countless offers in place. That’s not to say there won’t be any competition, but I can assure you it’ll be less than the warmer months, and that means you could not only find yourself with a deal, but at a good price, too. It all comes down to simple economics; lower demand should promote a better deal and facilitate an easier process.
3. Seller Motivation
For what it’s worth, winter is not the most popular time to sell a home. Most homeowners will list over the warmer summer months for two reasons: the weather doesn’t keep anyone from going outside and prices are typically adjusted in favor of sellers to keep up with demand. It’s worth noting, however, that not every home sells in the summer, or even the spring for that matter. For one reason or another, there are countless homes that remain on the market well into winter. Even worse, those stagnant listings are likely costing the owners something, whether it be opportunity, money or time. You see, the longer a home is on the market without selling, the more motivated the owner becomes. It is, therefore, safe to assume sellers in the winter are highly motivated because they have yet to sell their asset. If that’s the case, you may find yourself with more leverage than normal. And what is leverage if not the greatest bargaining chip?
4. Dedicated Agents
In the event you are enlisting the services of real estate agents, who I would argue are worth their weight in gold, winter lends itself to a more professional experience. If for nothing else, the slowdown in activity that happens every year around this time impacts agents just as much as everyone else — if not more so. That means agents may have a little more incentive to work harder for their clients in the winter months that are less busy. What’s more, there’s a good chance they won’t be bogged down by too many other obligations. It is, therefore, relatively safe to assume you will be one of their higher priorities — if not the highest. The undivided attention of a truly great real estate agent could be invaluable to your home search for several reasons. Not only could it save you time and money, but the headaches that typically come with buying a home as well.
Again, there is no better time to buy your next house than when you are decidedly ready. All of the anecdotes and numbers mean nothing to prospective buyers if they aren’t ready themselves, but I digress; that’s not to say each season doesn’t coincide with inherent advantages. As it turns out, winter has several advantages of its own, not the least of which include what I highlight above.