As November unfolds and the holiday season approaches, inflation has cooled from recent highs, and interest rates have edged down following the Federal Reserve's latest adjustments. These shifts have made this expensive time of year a bit more manageable for American consumers. But with these changes, many are asking: Is now the right time to make a big financial move, like buying a house?
Experts suggest that while the holiday season offers some unique opportunities for buyers, it also comes with challenges. Here's a closer look at the pros and cons of homebuying during the holidays.
The Pros of Holiday Homebuying
Less Competition and Lower Prices
Winter typically sees fewer buyers in the market, as many families aim to complete their home purchases before the new school year. This seasonal slowdown can work to your advantage.
"With fewer buyers actively looking, there's less competition, which can mean fewer bidding wars and an easier time securing a home," says Smitha Ramchandani, a broker associate with Christie's International Real Estate Group.
The result? More negotiating leverage for buyers. "During the holiday season, sellers are often eager to close quickly, leading to price reductions or flexible terms," Ramchandani adds. Data supports this: In 2023, the median home sale price fell by 1.1% between October and November and again in December. Nearly 19% of listings saw price drops in November alone, according to Redfin.
Tax Advantages
Buying a home before year-end could also bring tax benefits. "Buyers can claim deductions for mortgage interest, property taxes, and closing costs, which may reduce their tax burden for the current year," Ramchandani explains.
However, these deductions require itemizing your tax return, so it's important to calculate whether the benefits outweigh the standard deduction.
Better Access to Professionals
The holiday slowdown can also mean better service. With fewer clients, real estate agents, inspectors, and lenders may be more attentive and accommodating.
"Buyers during this time might expect a higher level of attention from every service provider," says Douglas Wagner, director of brokerage services with BOND New York Properties. Sellers and their agents are often more flexible as well, eager to schedule showings and close deals before the year ends.
The Cons of Holiday Homebuying
Fewer Listings
While buyers are less active during the holidays, so are sellers. Many homeowners hold off on listing their properties or temporarily withdraw their homes from the market, creating fewer options for buyers.
"Some sellers avoid the disruptions that come with being on the market during the holidays," says Wagner.
However, Bret Weinstein, founder of Guide Real Estate, notes that this season may be different. "Mortgage rates have bounced back a bit, creating a surplus of holiday inventory and significant room for negotiation," Weinstein says.
Scheduling Challenges
Holiday schedules can complicate the homebuying process. Coordinating with agents, inspectors, lenders, and attorneys can become tricky with vacations and festivities.
"Flexibility and planning ahead are essential," says Maria Avellaneda, an associate broker with Keller Williams NYC. Without preparation, delays could occur.
Added Stress
Balancing a home purchase with holiday obligations — from gift shopping to family gatherings — can be overwhelming.
"Buying a home during the holidays adds a layer of stress to an already busy season," says Louis Adler, co-founder of REAL New York. Still, Adler notes that for some buyers, the benefits can outweigh the stress, especially given the potential for lower prices and better terms.
While the holidays may not be a conventional time to buy a home, they offer unique advantages, such as reduced competition and potential cost savings. However, these benefits must be weighed against challenges like limited inventory, scheduling difficulties, and added stress.
For buyers tempted to wait for further rate reductions in 2025, experts warn that as rates drop, demand will likely increase, potentially driving home prices higher.
Ultimately, the decision comes down to your financial readiness and personal circumstances. If you're uncertain, consult with a local real estate agent, loan officer, or financial advisor to evaluate your options and make the best decision for your situation.
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