Real estate experts typically say that winter is a great time to buy a house, and with predicted favorable market conditions for 2016, this winter could be the best time to buy. If you're wondering how buying this winter could benefit you, here are five reasons to consider it:
1. Lower mortgage rates
Within the next year, the Federal Reserve is expected to increase interest rates, which means there's a limited amount of time to get a house before those rates go up.
"You are likely to get the best rate you will possibly see, perhaps in your lifetimes through the majority of the next year, but certainly, the earlier the better," Jonathan Smoke, the chief economist for Realtor.com, told CNN Money.
2. More homes to choose from
For a number of reasons, winter isn't a very popular time for buyers. While this could mean risky business for homeowners, for buyers on the market, this presents a great opportunity. With fewer on the hunt, you have more options with less competition. This reduces the likelihood of a bidding war, too, meaning lower prices.
3. More agents and lenders are available too
Having fewer buyers on the market also means you can also have more time with an agent or lender. Realtor.com pointed out that lenders sometimes waive fees during the winter off-season to motivate buyers to work with them. Moving companies also lower their prices during the winter months to encourage more business in a generally slow season.
4. Assessing a home in unfavorable conditions
One of the perks of looking at homes in the winter is that you get to see how it holds up in winter weather. What's typically only verbally explained to you when touring a house can instead be experienced firsthand. You'll see how cold it feels, how treacherous the pathways are or how difficult it will be to maintain in the snow. Seeing a home at its worst is much more telling than seeing it in its prime state.
5. Less expensive than renting
One of the biggest motivators to buy in 2016 is the fact that, in most cities, rent prices continue to be higher than mortgages, even with the impending increase. According to Ralph McLaughlin, a housing economist at Trulia, interest rates would need to rise to around 6.5 percent in order to match rent prices on a national level.
For more real estate tips in Indianapolis, contact Newkirk Realty today!