How does weather affect home prices?
With the holidays just around the corner, TV’s, cars, shoes, appliances, and everything else aren’t the only things going on sale.
Houses, too, are going on sale. In general, winter tends to have the lowest prices for properties across the country. We know that anytime is a good time to make deal, but consider these reasons for purchasing during winter:
Lower Home Prices
According to Nerdwallet, “Specifically, June and July are the most expensive reasons to buy a home. In January or February, though, homes cost 8.45% less on average than in June through August.”
One reason is that people are often trying to get the most for their homes during most of the year and price their homes high. Then after months of paying a mortgage on a house they’ve been trying to sell, the seller finally agrees to lower the price — at the end of the year.
It’s also a matter of supply and demand. Typically, there are fewer buyers in the market during winter. Less demand leads to lower prices. Once demand rises, the prices will rise too.
Typically, if a seller is putting their house up for sale during the winter that means that they either have to move or they really want to move. With the stress of the holidays, few people want to add the stress of listing their house and selling it.
The more motivated a seller is, the more they’re willing to negotiate. Sellers that can wait until the right price comes along are harder to deal with. If a seller needs to sell, they’re willing to make a deal.
Ultimately, you will be lifting a huge weight off of their shoulders. No matter the reason why they’re selling, the point is that their house needs to be sold. By purchasing their home, you’ve taken one more thing off their list that they no longer need to worry about.
Winter isn’t the only good time to buy a home, but so is fall. Inventory tends to be lower during the fall and winter than in the spring and summer and you can still take advantage of homeowner tax breaks.
If you own a home, you’re eligible for certain year-end tax breaks. Property taxes and mortgage interests are both deductible from your gross income as well as any prepaid interest. David Hryck, a tax real estate adviser and lawyer, says “that can make a serious difference in the amount you owe the government at the end of year and is a major benefit when it comes to buying a home in the fall.”
If you’re looking for your next property to flip, now is the perfect time to buy. You can purchase your property during the winter and by spring or summer it will be ready to be put on the market! That way you know you got the best deal on that property and you can sell it when the demand is high.
Now that you know fall and winter are the best times to buy, will you be using this to your advantage? What are something other things that you look for when purchase or selling a property? Leave us a comment below!