Ah, Santa is back in his workshop and all relatives have returned to their home base. Alas, the new year is here! There’s something about a new beginning that inspires us all to want to make a change in our lives as the calendar rolls over into a new year. Why not include a new home in this equation?
Why would the start of the new year be a good time to get a new home? Well read on and I’ll tell you so:
Less competition. It’s true – most folks act on their urge to move in the late spring and summer months. There are a variety of reasons as to why this is the case but in the end, it’s a fact. So why not hunt when others aren’t? True, there is historically less inventory to choose from this time of year, but also there are less folks to compete with.
Sellers are motivated. There are always instances where an individual will need to sell a home. Employment, change in life status, school district zoning – to name a few. The fact that historically less people are searching and less homes are on the market gives a seller motivation to move fast. A buyer may receive support on closing costs, help to buy down a rate, funds toward a home warranty policy – the list goes on!
Tax deductions. The longer one has owned a home in the calendar year and have been paying a mortgage during this time, allows for more deductions. The biggest reason being that mortgage insurance is a tax deduction, one that can add up quickly, especially on the front side of a loan. Get moving in January to write off as much as possible! As with everything in life, consult a tax advisor for further clarification on this topic.
Interest rates. This has obviously been a hot topic over the past 6 to 9 months. But, typically the Federal Reserve outlines when it plans to meet throughout the year and hints toward where they are headed. While rates could drop, it has been forecasted that rates will more than likely hold steady through most of 2023. Why risk an unknown occurrence – get out in front of this before anything potentially changes.
In my world, anytime of the year is a great time to buy a home. There are certainly advantages to jumping in early before the spring gets here. Want to chat on the topic? Give me a and we can meet up for coffee (or something stronger)!