If buying a home is on your holiday wish list, Santa might be able to deliver this year. With some help on your end, of course.
Read more to learn why house shopping this Christmas season might finally be your chance to score your dream home.
Bidding wars are cooling down
The holiday season is traditionally a slow time for sellers, making the playing field far less intense.
Crazy bidding wars and sky-high home prices ruled spring and summer, but that’s coming to an end. This gives you more time to make decisions, less competition, and a bit more negotiating power with sellers.
As a buyer, you no longer need to presume that you’ll have to offer above listing price for a home in a bidding war.
According to Realtor.com, home prices are high, but the growth has slowed, leaving sellers making price adjustments and entertaining offers below list price.
Inventory will still be scarce
Unfortunately, the holidays don’t call for all good news for buyers. The number of homes on the market will be lower than it was in spring and summer.
Because of this, you will need to be patient as inventory levels remain tight. But there’s still some good news!
With this being a fairly “normal” holiday season compared to last year, fewer buyers are shopping for homes right now. So, if you’re one of them, you have less competition than usual.
Interest rates are at an all-time low
Homebuyers have the advantage of low-interest rates. According to the Mortgage Bankers Association, as of Nov. 10, the rate for a 30-year-fixed-rate loan was 2.98%.
But this won’t stick around for long. They predict rates to increase to 4% by the end of 2022. However, these rates aren’t likely to rise all that quickly.
According to the Federal Reserve, interest rates won’t rise much until the economy has reached full employment and inflation has leveled out.
Take this into consideration when depicting your budget and pay attention to how small changes in mortgage rates can affect your monthly costs.
What to expect in the new year
The homebuying clock is ticking! With the market predicted to pick up in early 2022, winter is the time for house hunting.
All in all, you have a reason to remain hopeful in the next few months. Keep in touch with your Real Estate Agent. They will keep you updated on the market as temperatures drop.
If you need help finding the perfect Realtor to cross this big item off your Christmas list – we got you covered!
