5 reasons to think about purchasing a Des Moines home in December

The holiday season is already underway as the temperature drops and the days become shorter. You might be surprised to learn that purchasing a home is one of the many reasons to get in the spirit. There are many advantages to purchasing a Des Moines home in December, from tax perks to less competitive markets. 

Are you ready to start the sleigh ride?

Contrary to popular belief, December might be a great month for home buying. This is especially true for buyers who are tired of falling short to competition during the busy months for property purchases.

According to Federal Reserve data, the months of June, July, and August see the most home sales. The annual real estate market has its high in the summer and its bottom in the winter. Shopping for a home is undoubtedly less enjoyable when the weather is terrible, the roads are hazardous, and it is dark.

However, if you shop during the off-season and are prepared to withstand the weather, you could be able to walk into a property for less money than you would pay in May. The likelihood that you can purchase at a lower price than during the busiest months for home buying is very high.

In December, when everyone — even sellers — is probably in a jollier, more-generous mood, good offers are still available. Here are five reasons for why December may be a special month for home buyers looking for deals:

1. Limited Competition

The competition is minimal in December. As they open presents and get ready for a big supper, other buyers are at home, gathering around the Christmas tree.

As your agent, we can help you find the perfect property and negotiate to get you the best deal possible. Sellers who are on the market in the winter generally need to sell, and as a buyer with less competition, there is potential that we can get more concessions to help you ultimately get into the home for less money or with a better interest rate.

2. Tax Benefits

In search of some year-end tax deductions? You can deduct some expenses from your 2022 tax return if your house purchase closes before the end of the year. They consist of:

• Mortgage interest

• Loan points

• Property taxes

Keep in mind that the early years of a house loan are often when mortgage interest costs are most expensive. So, for you and your family, this could be a pleasant last-minute tax benefit. And of course, if you're in a position where you can make an extra payment soon after closing, you'll already move yourself ahead in the amortization schedule - the document that details out what amount goes to principal and interest with each payment. Any extra payments will help you move through the schedule faster and ultimately pay less interest and pay off the home quicker.

3. Sellers are Highly Motivated. 

Most people who list their homes in December have a schedule in mind. They might be moving for job, wishing to move for the summer, or needing to sell their house before the school year is through.

Sellers who place their homes on the market in December might be more eager to seal the purchase and start the new year fresh because the holidays are quickly approaching and a new tax year is almost here.

4. You get a realistic look at properties

A chance to view real estate homes in a sharper light is provided by winter home shopping. Buyers may more readily concentrate on the permanent features of the home with the flowers gone and the curb appeal at a minimum.

As you tour a property, pay attention to things such as:

• How well the home is insulated.

• Whether you feel cold drafts.

• Whether the window seals seem tight.

• How well the furnace is working.

A further benefit of shopping in the winter is that your inspector will get a better look at the house while it is being stressed by the colder weather, winds, snow, and rain.

5. Rates still are low

Although mortgage rates are not as low as they were last year, they are still competitive with historical averages. And we can help you negotiate concessions with the seller potentially to assist with getting you an even better short term rate.

Way to take advantage of the tax benefits of buying a house in December. When you're prepared to begin the purchasing process, you should contact a lender (or lenders) to request a rate quote. We happen to have some great lenders in the Des Moines and Central Iowa area that we'd be more than happy to connect you with! When you know about how much house you can afford, the fun part—house hunting—begins!

The Downside: Selection

The bummer about winter house hunting is that, even if you are not the kind of shopper who needs to try on 20 pairs of shoes before making a decision, you will probably be disappointed by the limited number of homes available. Yet, as interest rates have risen, and more homes have come on the market and will stay on the market a little bit longer, you have the benefit of less competition and the ability to see more homes without having to make a potential snap decision due to the competition in the market.

Conclusion

Buying a home in December can be an advantageous choice for anyone seriously looking in the Des Moines area, and it never hurts to look at potential properties even if you don't think you can quite commit at this time. Enjoy the benefits of purchasing a home around the holidays, whether you do so immediately or not.

We would be honored to assist you in finding your future home. Call us today and let's fulfill your holiday wishes!

How have you found buying real estate at various seasons? Comment here or on our Facebook page to share with us.