January Housing Trends: Less Competition, Lower Prices
We've seen a steady rise in listings, sales, and inquiries as we roll through the holidays. We take a look at why January is the kick-off to a busy winter and spring of home sales.
There's certainly something to the belief that spring is prime time for housing sales. What's often lost in the shuffle, however, is that January and February can be great times for the right kind of homes and the right kind of buyers. While it might take a brave and motivated buyer to brave the cold weather, there are a number of reasons why they may end up rewarded with more house for the money!
One big factor is competition. With fewer buyers in the market through the holidays and winter, they have more purchasing power, especially when working with sellers who may have had their property listed since the previous spring, summer, or fall. Sellers are ready to move on, listings may have had one or even two price cuts, and the decrease in inquiries may make the seller more motivated to let the house go.
With another rise in the interest rate forecasted, prices will only go up from mid-winter. Home prices are 8.5% lower in winter, more than enough of a price difference to be more aggressive in down payments that could end up saving new owners thousands of dollars over the life of a 30-year mortgage. As more houses enter the market in spring, prices rise and make the incentive less and less enticing.
Lower prices, less competition, and more motivated sellers make January the perfect time to find your home, or at least get serious about looking. EXIT Northern Shores is ready to make that home search exciting, easy, and fun!