A New Home for the Holidays?

Every day people ask me when is the best time to buy a home.  Without fail, I usually say it’s one of two times a year….July 4th to Labor Day and Thanksgiving to Valentines Day.  We are currently in one of those times of the year, but this year seems a little different. Let me explain why these two times of the year are good to be a home buyer.

First reason why these times of the year are best for home buyers is simple, less demand and less people.  These are the two times of the year where people take vacations around holidays.  July 4th to Labor Day, everyone is at the beach, on their boats or someplace having fun.  It’s not a time to think about school systems and uprooting their kids before school starts for the year.  So it’s a good time in the real estate business to take a break that time of year.  The other time, Thanksgiving to Valentines is a longer period of time, and a little more complex.  This time of year you have people travelling for the holidays, the holidays themselves and vacations through the new year.  The January to Valentines period is the lull before the spring market.  This is a result of some real estate agents feeling sellers must wait for the leaves to come out and the grass to turn green before they list their house for sale, so the pictures online look better.  Plus there is snow, sand and salt that sellers need to clean up after open houses.  Because of this thinking, what you get are frenzies during the home buying year with a flood of sellers and buyers, that makes certain times of the year harder to buy and sell than others.

The good news is that there are people like myself who feel it’s best to wait for these spurts to subside and try to get better deals.  The old saying is to buy low and sell high.  So I usually advise people to sell during the busy periods, wait a couple months, and then buy during a slower period of time.  The end of the year is especially true as interest rates usually drop (at least become more stable), less buyers are looking at houses, desperate sellers wanting to get rid of their homes before years end and potential tax considerations.

So do I feel that way in 2018?   The answer is kind of.  I’m finding this holiday season turning into one of the busiest home buying seasons in memory and it’s exactly for the aforementioned reasons.  Interest rates are rising, and are projected to continue to do so.  Interest rates today are anything but stable, with the stock market moving up and down 300 points on a daily basis, and murmurs of a bear market in the distance.  There are more people out and about during this holiday than years before, and that’s because prices are dropping for the first time in a while.  And according to MLS data, single family homes that are currently for sale in Gloucester at all price ranges are averaging 119 days on the market.  During the spring and summer, there were multiple offers on every house after the first open house, with the sales prices routinely going above the list price.  Now homes are sitting longer, prices are dropping and rates are rising.

So is this the time to buy a home?  Well it depends on a lot of factors.  The first step is you need to talk to real estate professionals, and first is a mortgage banker like myself.  A mortgage consultation is always free, so you have nothing to lose.  You can get your credit run for free, receive a complimentary debt to income analysis and preapproval letter if you qualify.  From there you can talk to a real estate agent, because now you now what you can afford, where you can afford and what it will take to buy a home.  Plus one of the first things a real estate agent is going to ask, have you been preapproved by a reputable lender?

So is this the season to buy a home?  Let’s find out.

Brandon Pratt- NMLS 46922

CrossCountry Mortgage, 180 Main Street, Gloucester, MA

Direct 617.688.6891 and brandon.pratt@myccmortgage.com

NMLS3029 | NMLS1605090

CrossCountry Mortgage, Inc. is a licensed mortgage lender in the Commonwealth of Massachusetts.

Licensed by the New Hampshire Banking Department

 

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