This Story was originally posted on LearnVest by Pauline Millard on Dec 23, 2013
December is usually when people are looking to deck their
own halls—not buy new ones. But buying a home in December and January can be a
smart move.
Michael Corbett, Trulia’s real estate expert and a
bestselling author, is a big fan of the holiday season, what he likes to call
“the lull.” He says that savvy home buyers should take advantage of this time if
they’re serious about buying.
Why?
“Mortgage rates are low now, although they are higher than
they were six months ago, and higher than they were last March,” Corbett says.
“The price increases that were common in metro markets such as Las Vegas, Fort
Lauderdale and Orlando are slowing. Even Atlanta, which had an average 19%
price increase last year, is showing signs of cooling.” Corbett explains why the holidays are no time to take a long
winter’s nap if you want to buy a home.
LearnVest: What do
you like about what you call The Lull, which is in December and January?
Corbett: There
isn’t a lot of competition. People know they’re going to be busy or traveling
during the holidays, so most deals have been wrapped up or people have put off
looking until after the New Year. There are still homes on the market, but not
as many people gunning for them. This is an advantage to both buyers.
LearnVest: If it’s
a slow season, doesn’t that mean inventory will be lower?
Corbett: Yes, but
the sellers are motivated. These are likely the homes that for whatever reason
didn’t go during the peak season. The sellers will want to get the deal closed,
especially for tax purposes. For a lot of people, it’s mental. It’s the end of
the year and they want to tie up loose ends. This is an advantage for buyers,
especially if there are points to negotiate.
LearnVest: Would
other key people in the equation, such as realtors and mortgage brokers, also
be scarce?
Corbett: I know a
lot of realtors who love this time of year. They say they get a lot of business
done because the people who are out looking are serious. As a buyer, your
broker will have more time to focus on you, as opposed to other times of the
year when they might be juggling more clients. You may not be able to close
before the end of the year, but it’s a good time to get something under
contract.
“Buying in winter may
be the ultimate litmus test for a home, since all the big systems such as
heating, plumbing, and the roof and gutters are put to the test in the cold.”
LearnVest Could a
homebuyer miss or overlook something while buying in the dead of winter?
Corbett: Buying in
winter may be the ultimate litmus test for a home, since all the big systems
such as heating, plumbing and the roof and gutters are put to the test in the
cold. Some of the curb appeal may be gone, but fixing landscaping is a lot less
expensive than finding out months later that your boiler doesn’t work.
LearnVest Would a
slow winter market be prime time for investors?
Corbett: Investors
are looking for fresh properties, often things that aren’t even on the market
yet. The chances of getting outbid by an investor during a winter house hunt is
unlikely. Few brand-new properties come on the market this time of year, so the
investors won’t be circling.
The home is located in the Chatham Crescent area of Ardsley which is
one of the most sought after neighborhoods to live in. It’s clear why, the streets are lined with beautiful homes, mature plantings, and live oaks dripping with Spanish
moss. In addition the area is centrally located to the best of Savannah. Only
10 minutes from downtown, 30 minutes to Tybee Island, and 5 minutes to the
exploding Skidaway, Victory shopping area with its new Whole Foods, Chipotle,
and Brusters Ice Cream. This is a charming home in a sweet location and is sure
to sell quickly.
