Regardless of the season, every future homeowner wants to find a perfect house for an affordable sum. However, the housing markets throughout the world have shown us nothing but competitiveness and rising prices in the past year.
Australian real estate market grew over 19% in 2021, with the highest growth rate since 1989. Fortunately for future homeowners, the housing values moved past their highest rates at the beginning of the year, continuing with a much slower pace. Since the median home cost rose substantially faster than the median income, obtaining a deposit was much more challenging, especially for first-time homebuyers. Nevertheless, the end of the year brings significant change for property investors. Thus, if you're in search of a new home, you might want to read about the reasons why the holidays are a good time to buy a house.
You can buy a dream house at a discount
Selling and buying a home is an overwhelming procedure requiring work, administration, and some additional investment. Thus, no one wants to go through that process during the festive season. They'd rather spend that special time creating meaningful family moments. That means much fewer interested buyers and sellers eager to pass the home to new owners. Such instances could lead to lowering home costs through negotiation. In addition, you can perhaps request additional repairs and upgrades within the agreed price.
You should also know that not only sellers are motivated during this season, but banks and other financial institutions. Foreclosing the properties and getting them off their books before the end of the year is very important to them, so it's good to use this unique opportunity.
Holiday seasons have a less competitive housing market
Even though the holiday season offers fewer properties on the market, many experts would agree that the end of a year is a perfect time for a house purchase. Homeowners are very motivated to sell the home before the New Year, especially if it has been on the market for a while.
Yet, few buyers know that the holidays are a good time to buy a house, so the market is way less competitive than usual. The less competitive housing market also means a less competitive recommendable real estate agent hunt. Since the season is on a cool-down, you'll be able to take your pick from some of the best experts in the business to help you navigate the whole process.
Checking out properties without a pressure
A less competitive housing market doesn't only mean more affordable home costs but also less stress! You won't have to run around, checking properties quickly in fear of missing out since fewer buyers are interested. After running extensive research of your potential future houses, visit all of them instead of opting for only a couple.
Some homes on the market might seem less attractive than others, but that doesn't mean they can't be hidden gems. The home sellers can make the properties much more beautiful through staging and home improvements. That's why it's wise to consider a light staged home with a lower price and revamp it by your likings.
Benefit from the end of the year tax break
Buying a home during holidays has another great benefit since the end of the year purchase offers a significant tax write-off. The sellers usually deduct the mortgage interest rates on the homes if a sale closes on or before December 31. Additionally, there is a combined deduction of up to $10,000 of property, local, and state taxes. If you're buying a house as an investment asset, you can exploit even more tax benefits with a business entity.
The holidays speed up the house closing
With the holidays ahead of you, everyone will be eager to finalize the sale before it. This fact can speed up the whole process and shorten the time of closing. Make sure to book removal services in advance
Moving any time of the year imposes a substantial amount of work. Still, when relocating during the holiday season, you'll probably have more spare time to prepare for it and pack everything. If you use the right tools and techniques, you can pack efficiently and even execute a stress-free move by yourself. You'll be saving some money, but you'll be sacrificing your vacation time. In addition, the holiday season is a nightmare when it comes to traffic and traveling anywhere.
Therefore, be sure what you'll be getting into when deciding on a DIY more.
Alternatively, you can hire removal services, which could perhaps cost you more. Even though there are fewer house purchases during the holidays, moving companies have a hectic schedule. Hiring the crew in advance and avoiding holiday weekends could help you save some money. Also, you can be sure not to waste time being stuck in traffic when doing it yourself.
The thing to be cautious about
If you find a great local real estate agent, you'll get an insight into why the holidays are a good time to buy a house and how it can bring you a fast home purchase at a lower price. Moreover, you will save a lot of time spent on a house hunt. With the right experts, all you need to do is tell them what you want. They will know exactly where to look for it. However, know that many real estate agencies have holiday vacations around those important dates. So make sure to be on the same page with your agent and ask about your timeline. Even though buying a home at the end of the year might speed up the closing process, it could also prolong it by a couple of weeks before the vacations are over.