The truth is there’s no perfect time to buy a home. But the beginning of the year sure has some big advantages that savvy buyers can take advantage of. If homeownership is on your New Year’s resolution list, you might be making one of the best financial decisions of the year.
Here’s why investing in real estate early in the year is a smart move—especially in a competitive market like San Diego!
Less Competition, More Negotiation Power
Spring and summer are prime home-buying seasons. Families want to move before the new school year, and sellers hold out for multiple offers. But early in the year? There are fewer buyers to compete with.
Imagine walking into an open house in January and having plenty of time to check out the home—without a crowd. Now picture that same house in May, packed with buyers ready to bid higher than asking price. Wouldn’t you rather buy when there’s less stress and more room to negotiate?
Sellers who list in January or February are often motivated—which means you could score a better deal or get seller concessions like closing cost assistance or a home warranty.
Interest Rates May Be Lower
While interest rates fluctuate, the beginning of the year often sees adjustments from the Federal Reserve, which can impact mortgage rates. If rates drop, locking in a lower rate early in the year could save you thousands over the life of your loan. For example, if you buy a $600,000 home at 6.5% interest instead of 7%, you’ll save hundreds per month on your mortgage payment. That’s money you could put toward renovations, vacations, or savings! Waiting too long could mean rates go back up as demand rises in the spring.
More Time for Tax Benefits
Buying early in the year means you get to take advantage of homeownership tax benefits sooner. Mortgage interest, property taxes, and some closing costs could be tax-deductible. If you buy in January instead of November, you’ll maximize those deductions for the year!
Talk with a tax professional can help you make the most of these savings.
More Time to Settle In Before Summer
Buying a home early in the year gives you some breathing room to move in, personalize your space, and enjoy it before summer kicks in.
Say, if you buy in February, you’ll be unpacked and settled by spring, just in time to enjoy your new backyard, explore the neighborhood, and maybe even host your first summer BBQ.
A Smart Hedge Against Inflation
Real estate historically appreciates over time. In fact, according to Zillow, the average home value in San Diego is sitting at $1,005,710, which is up 4.3% from last year. Homes here don’t stick around for long either, they typically go pending in about 26 days! Home values tend to rise, which means waiting too long could cost you more money in the long run.
To give you an idea, if a home is priced at $750,000 in January, it could be worth $25,000 more by next year. Buying sooner locks in today’s prices before they climb.
Real estate is one of the best long-term investments, and the sooner you start, the better!
If you’re thinking about buying a home or investing in real estate, don’t sleep on the early months of the year. With less competition, possible lower interest rates, tax perks, and appreciation potential, it’s a great time to invest.
So, are you ready to make 2025 the year you become a homeowner or investor? Hit us up, we’re always happy to help.