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Home prices drop in the winter

On Behalf of | Dec 1, 2016 | Residential Real Estate

The winter can sometimes be the best time to purchase residential property in Delaware and around the country. Because many families try to buy homes before the new school year begins, the summer months can be a very busy time in the residential real estate market. A lot of home buyers try to complete their transactions before fall, so the market becomes less competitive after all of them are gone.

While there are fewer real estate buyers in the winter, there are also fewer real estate sellers. However, many of the people who are selling their homes during the off-season are more open to negotiations on price. People may be forced to sell homes in the winter because they are going through a major life change like a divorce or a corporate transfer. There are fewer buyers per property in the winter, so buyers have more power in the negotiation process.

According to research by NerdWallet, homes that are sold in January and February cost an average of 8.45 percent less than homes that are sold between June and August. Home prices go down more significantly in the most competitive real estate markets that have limited supply. When a buyer is able to negotiate a lower home price, the savings could translate to a smaller down payment, lower closing costs and lower monthly mortgage payments.

When residential real estate prices go down during the winter months, a buyer may be eager to purchase a property at a reduced price. A real estate attorney could help a new home buyer to determine whether there are any potential problems with the house through a review of the disclosure documents.