Rokham Fard, co-founder and chief marketing officer at TheRedPin.com, said agents representing first-time homebuyers and investors should prepare to take advantage of the holiday hangover and added that January 20 is the day for rock bottom real estate purchases.
“We’ve looked at data over the last five years and found that January 20 was the day to final the lowest housing prices,” Fard tells REP, citing this coming Tuesday as the best day to make a real estate offer.
“Consumers can see as much as a $20,000 discount and business picks up towards the third week of January, condos sell heavier than more other properties.”
This data could be a boon for investors looking to buy a discounted investment property or to the young couple looking to purchase their first home, Fard added.
“That extra $20,000 could help them with any repairs need for the property or similar developments.”
According to sales data from TheRedPin.com, inventory around this time of year is lower, as is price, because it’s a lot harder to sell and prepare a home for sale in the winter time. To appease the market and sell if you must, sellers often price their homes lower in the winter season to attract buyers.
Between 2010 and 2014, the real estate newbies showed that home prices averaged $22,338 less in January than in the next least expensive month in any given year.
“There might be less inventory, but sellers at this time are generally highly-motivated. This creates a buyer's market … but, buyers have to move fast, it's a short window,” said Fard.
“A home is a huge purchase, and we'd never suggest rushing into such a deal. We're simply saying that if you are in the market for a new home, the inconvenience of the cold and snow could pay off with serious savings.”
TheRedPin.com studies also showed that over the past five years, the average price for a home was $461,761, nearly $16,000 less than the next least expensive month and $60,000 lower than the highest month.
Conversely, the month of May saw an average of $515,256 over the past five years.
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