When I was showing a property to a buyer this weekend, she made the comment that she thought winter was the best time to buy a home. I agree. Regardless of the market, I have always felt winter can be the best time of year to buy a home… provided you can find a home you like!
Why is winter typically a good time to buy?
Less competition
Many people don’t like moving in the winter… that can mean more buyers snuggled up in their beds while you enjoy less competition for buying a home. The chart below of closed sales going back to 2004 shows sales always shoot up in the spring and summer months and drop down in the winter months. This can mean less competition and fewer crazy multiple offers in the winter months.
Prices are lower in the winter
Although prices have been rising steadily year-over-year, they still tend to be lower in the winter months. Even in this crazy year of consistently rising home prices, November median sales price was lower than October, and December was lower than November. Less competition typically means lower prices.
What about Winter 2021?
It is already feeling different this year. I have clients in buying mode right now rather than waiting for spring. I expect the sales this year will be directly tied to inventory… when inventory goes up, sales will go up.
Why aren’t buyers waiting for spring this year?
- Mortgage rates are low – in 2020 mortgage rates hit all-time lows, falling below 3% for the first time ever. This means homes could cost potentially tens of thousands less over the lifetime of the loan. Rates are expected to continue to be low in 2021, but you never know when this could change.Â
- Buying can be more affordable than renting – low mortgage rates has made the typical monthly payment including principal and interest less expensive for buyers. And when paying a mortgage that money is reinvested back in your favor and building equity for you rather than contributing to your landlord’s net worth.
- Equity is growing – according to John Burns Consulting, 58.7% of US homes have at least 60% equity… the result of forced savings from mortgage payments. This means foreclosures are not expected to dominate the market as they did when the housing bubble burst over 10 years ago and you can rest assured that your home investment is a sound one.
- Home prices are appreciating – median sale prices have been dropping a bit the last couple months due to the traditional winter slump but are expected to rise again in 2021. Buying when prices are lowest but expected to rise coupled with low interest rates supports confidence in a strong long-term investment.
If you are thinking 2021 is your year, let’s talk. There is nothing I like more than helping people find the right home for them.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
Words clients have used to describe Sharlene…
very patient, professional, personable, detailed, unbiased opinion, knowledgeable, compassion, integrity, dedication, hard-working, honest, friendly, responds, no pressure, informative, thoughtful, attentive, listening, supportive, thinking outside the box, expertise, communication, timely, amazing, genuine, kind, a Godsend, reassuring, available, conscientious, resourceful, proactive
