December 11, 2018
Why the December Housing Market is on the Rise This Year
Unlike previous years, the December housing market is red hot in 2018. December used to be renowned as the slowest month for the housing market, however, many elements are shaping it to become one of the best times to buy or sell a home. Here are a few of the reasons why the December housing market is breaking speed records in 2018:
Over the past year, the average 30-year fixed mortgage rates rose a full percentage point higher. Many prospective buyers fear that the mortgage rates will continue to rise if they decide to wait until 2019 to purchase a home. As a result, they are taking advantage of the current mortgage rates in this last month of the year, before it is too late.
For the past few years, prices on homes have seen a sharp rise. Buyers, in turn, have found difficulty in affording the homes, which has made sales weaker in recent months. December has seen a decrease in the price of homes on the market, capturing the attention of buyers who have been waiting for something within their price range.
When people are considering buying or selling a home, few decide to do so in the month of December. After all, school is in session, people are celebrating holidays, and the weather isn’t exactly favorable. However, this also means that there is less inventory and fewer potential buyers, making the housing market far less competitive in December. In fact, according to Realtor.com, views per property are 21 percent lower in December than any other time of the year. Buyers and sellers can use this to their advantage, and make an affordable sale without worrying about losing to the competition.
Even though buyers have fewer options to choose from, they are highly motivated to close a deal in December due to a number of factors. For one, their current lease could be expiring in January, so they will need to move into a new home right away. Second, they could have finally saved up enough money to afford a home, especially in a month when prices aren’t as steep. Lastly, they could have children that are on a holiday break from school, so they will want to move before school starts back up again.
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