In most years, homes in Delaware tend to move slowly during the month of December. However, in 2018, that may not necessarily be the case. This is because many buyers are wary that interest rates are going to continue climbing throughout 2019. Currently, interest rates are just below 5 percent. As a lack of inventory has caused housing prices to increase rapidly, interest rate increases may result in significantly higher mortgage payments.
Price appreciation has caused some to be priced out of the market, and both new and existing home sales have started to slow. One potential silver lining is that with fewer buyers on the market, prices are starting to flatten out or at least not appreciate as quickly. Buyers may also benefit because prices may be lower in the winter compared to the summer in most years.
For example, prices in Chicago are 18 percent lower in the winter compared to June. In popular markets like Boston and Las Vegas, more homeowners are reducing the list prices offered to consumers. While buyers may not like the thought of moving during the holiday season, there is often less competition for available inventory. For those who have a lease expiring, it may be necessary to act quickly regardless of what the calendar says.
Prior to a real estate closing, it is generally a good idea to speak with an attorney. This may be beneficial during the winter season when a leaky roof or a malfunctioning furnace could be especially costly to fix. An attorney may review a purchase agreement as well as take steps to ensure that all necessary disclosures have been made. If there are issues discovered with the home after closing, legal counsel may help a buyer pursue appropriate remedies.