The holidays are an ideal time to search for a home

The holidays are an ideal time to search for a home

Now is a good time to buy a home. The holidays are a great time to buy a home for a number of reasons, especially for investors and those looking to buy a luxury or vacation home. 

As competition tends to ease during the fourth quarter, homebuyers will likely find that they won't be forced into a bidding war when making a purchase. Not to mention, one expert notes that sellers who have their homes on the market during the holidays are serious. 

"A seller who is actively showing their property during the holidays is more motivated to sell than a seller merely testing the highs of the market," said San Diego real estate agent Joy Bender. "There are some builders in San Diego offering unusual discounts on current phases of move-in-ready models in an effort to clear inventory off the books."

Bender added that sellers during this time of year are highly motivated to sell before 2014 in order to close escrow for tax advantages pertaining to capital gains. She added that the decrease in buyer activity has reduced the number of homes receiving multiple offers, particularly for high-end and vacation homes. 

Buyer demand slips in October. Redfin, a real estate brokerage, recently released its October 2013 Real-Time Bidding War Report showing that demand already fell during the month. 

Here's what the data showed:

• Of the offers written by Redfin agents in October, 55.9% faced bidding wars, down from 58.3% in September.
• October marked the seventh consecutive month-over-month decline in competition. 
• Year-over-year competition fell for the third straight month in October. 

Still, the report noted that competition was higher than expected during the month. For those assessing their mortgage options, now might be a good time to get a great deal on a home. However, experts note that this waning demand will not last long, as 2014 will mark the start of the home seller season. 

"In welcome news for buyers, bidding wars are nearing 2011 levels," said Redfin economist Ellen Haberle. "This reprieve is unlikely to last much longer; as soon as the clock strikes midnight on New Year's Day, competition probably will reverse course as the 2014 selling season takes off."

Academy Mortgage is the #1 Independent Purchase Lender as ranked in the 2012 CoreLogic Marketrac Report. Visit http://academymortgage.com/davidbraun to find a loan, get a rate, or calculate your payment today.

David.Braun@AcademyMortgage.com