5 Reasons Why January is a Great Time to Buy a Home
Lock in a Price & Interest Rate Before the Market Rises
CoreLogic, an authority on financial and property data, says the prices of homes increased 5.4% while mortgage interest rates increased 15% in 2018. These upward trends are expected to continue.
Therefore, buy a home in January to avoid these price increases and to lock-in current mortgage interest rates.
Get Ahead of the Market
January is a perfect time to get ahead of the market before competition for houses traditionally heats up in the Spring. That said, January is typically a slower month for real estate transactions than in the Spring. Therefore, there is less competition for the homes on the market.
Once you get towards the end of January, however, sellers are starting to list their homes and competition for the Spring selling season is about to heat up.
Preview a Home During Bad Weather
If you buy a house in January, you can see the home during the harsh winter months. When it’s cold and snowy, you can see for yourself how a home responds to the winter.
Does the house maintain heat? Does the house have a serious draft? Does the property have dangerous areas where ice and snow create a hazard? All of this information becomes knowledge to use as leverage in a negotiation.
That said, please keep in mind that you can address these concerns. In fact, with so many older homes on the North Shore, these things are inevitable and common. Read John Russo’s article 5 Essential (and easy) Tips for Winter Preparedness to learn more.
In short, knowledge is power. This knowledge can help you negotiate a better price on your home, and it can prepare you to maintain the home you love.
Your Finances are Settled
With the holiday spending season over, you are no longer spending every waking moment shopping for gifts. Now is the time to refocus on the bigger picture of your finances. January is when people have cashed their work bonuses and might receive money from their flexible spending plans.
With cash on hand, it’s easier to make a down payment on a home than it might have been during the busy December holiday season.
Sellers Might Be Motivated
If someone puts a home on the market before the typically busy selling seasons, the seller may be highly motivated. Perhaps they waited until after the holiday chaos to sell? Perhaps they were relocated for work?
Regardless, if they list their home during an off-peak time of year, you may be positioned to get a better value on the purchase of the house.
That said, even if the seller is not highly motivated, looking in January gets you ahead of other buyers while people recover from the hectic holiday season.